RESET...
I used to be an avid video gamer when I was young. I still love to play video game but priorities in life changes over time as we grow older. Less time available to play and more required for work. Perhaps, once I finish working hard enough I will get to play again one day. Some people of course have the idea work hard play hard, but obviously there is never enough energy for both, at my age.
Coming back to video game, do you ever notice there is this little "Reset" button at the consoles? This button is used to go back to stage 1 or the start of your stage and you are allowed to press it at anytime during the game. Sometimes, when the challenge becomes unbearable and when you know that you missed collecting a few items that you need to win the game, you will probably lose the level without them, then you go to this help button "Reset" and start all over. This time, we know for sure what needs to be done to get pass the level of course.
Rather than wasting time continuing and wasting time not achieving what we want, if we know our mistakes and have a solution, sometimes it is better to reset and start again. Of course some of you ask why don't persevere and continue ahead. There's a little difference with persevere and using the "reset" button. Persevere when you know what you are doing is correct and you just need a little time and hardwork to get it working for you. However, if you know that there is something wrong with your method and you will not get pass continuing to do it wrongly, then it is better for you to move a step back or even start again the correct and proper way.
In investing and trading, many people come in with a lot of experience. These past experience, may not be something that can work favourable for you and if you have not achieved success so far, I would say they are probably the ones working against you.
Successful people always view things differently from the past experience and open to absorb new knowledge and ideas. Reset and learn with your glass empty and not with your glass half full, which may be polluted with past experience which may not work for you.
Reset and Thrive....
SPX
Almost 290 points (7%) rally up for the week closing at 4463. 4 straight days of uptick, something which we have not seen for a while. Are we back in the bullish game? Not really yet, but I am quite optimistic it will come soon if certain parameters are met. We have breached the 4400 and SPX closed with bullish candle above 50 MA.
Although, in the next days it will once again hit resistance at 200 MA and retrace back, we see if the 4400 level will turn support. If it does, we would likely see SPX breaching above 200 MA quite soon.
Keep a watch on VIX also as it has retraced from above 30 levels to 24 now. Lower VIX means less fear in the market and recall we came from below 20s. People will start to FOMO again and market participants which has left or sold off will start to comeback to the honey or money pool.
It has been a while since we see so much green for the week. This has been the second week, the market has established a bullish momentum up.
NDX
The bulls took a bit of control last week refusing to go lower and bounced up below the previous low of 13065. Nasdaq had a strong rally up of about 10% from its low.
However, continued upward momentum needs to break above 50 MA. As SPX had already broken above, if the SPX continues the upward momentum, highly likely Nasdaq will follow.
The next level to break upwards is 15000 and if downward support to watch is 13500.
INVESTING & TRADE BUYIN...
We expected a small pullback on Visa last week but it did not happen. Visa continued to rally strongly upwards. We exited the Bull Put Spread mid week though.
Investment position is quite positive as it has moved 15% up from our 190 entry. Lets see if V can cross up above 200 MA.
TRADERS TALK
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