Thursday August 10, 2023 9:47 PM
FROM THE G. Allan Collins PRIVATE BLOG
The Markets had trouble holding on to its gains and we had another key reversal day.
It’s not often that I feel 100% certainty that something is going to happen in the market, but I called the Market Top on July 27th (Check July 27th On My Twitter Account @moneymagicians_) before the market even closed. This has been one of those situations where I feel with 100 % Certainty we will go lower tomorrow and lower in the short term. The triple black candle pattern appeared yesterday. This occurs when you you’ve got a first black candle at or near a pivot point on a chart. We use our own proprietary AI software that has our algos and unique inputs to come up with our in house Pivot points, support and resistance levels. If you want great results you’ve got to have a unique system because lets be honest, you use the same Moving Averages like the Fifty and Two Hundred Day Moving Averages. Come on Folks my 9 year old daughter knows about the Moving averages that every Tom, Dick And Harry trade off and then you will be another statistic, just one trade away from being added to the 95% of traders that lose money. Stick with us and a unique way of thinking and trading and you’ll be just fine. So The First Black candle randomly appears on our chart then a second one at a key level usually at a Key Support level and then You get the third black candle. This is a highly bearish set up, especially if the third black candle is a BEAR BLACK CAB|NDLE because this represents a very important Trend Change. It’s a shift. And clearly the trend has shifted We have a double top, we have a definite divergence on RSI, but when you have three black candles, two of them at the tops and one in a major a support zone, you start to realize that we’re now at a point in the market where a lot of traders are going to be getting short or going to cash. It is very possible they will continue unloading the big Cap Tech stocks, so if you see heavy, heavy selling and you are not short I suggest getting short because as I have mentioned, August is historically the worst month of the year on average because of seasonal challenges and the fact that the Nasdaq 100 was up 40% YTD. Watch the VIXX because we are at a dangerous level where we could bounce to 18-20 quick and If you see the VIXX over 20 then look out below. Use Stops to manage risk and you can use the same support and resistance levels from we pointed out yesterday.
We went short SMCI in AH if you can get filled at $269 or better.
G. Allan Collins