Over the weekend Bitcoin surged and today the cryptocurrency eclipsed $700 as stocks fall during the session. Friday’s action was not ideal and was a signal weakness may be on the way. Today’s move was certainly not what bulls wanted to see. There is certainly a lot to be worried about with the Fed meeting on Wednesday as well as the Brexit vote a week from this Thursday. We can go on and on about risks with the UK exiting the EU, but at this point it is all noise and we can only trade the market in front of us. After today’s session we are moving to a more cautious tone and await for the market to throw off signals. Move with caution.
Not all is lost, but we are finding it hard to find charts with acceptable patterns. We will be patient with this market and will continue to be vigilant by protecting our capital and reducing our position sizes as needed. There is no need to be a hero in this market. Stay disciplined and execute the trade signals rather than searching out for trades. Most will over trade this market and churn there accounts lower. This market is not going to be easy to trade and without a plan in place it will be even more difficult. Without proper chart patterns from the last few days of trading it may be a bit before the long side gets active again. Time will tell.
Obviously it was not the start to the week we all wanted. Our situation may change so stick with Big Wave Trading as this market pushes forward.
Enjoy the week!
