Day trading course looking at consolidation in the market and the weakness as large money is not in the market.
As mentioned in our day trading course and in numerous posts, the market makers make direction in the market. We are looking for where the market makers are committed to buy. The CFTC or the Commodity Futures Trading commission releases the composition of open interests for Futures Markets. I normally do not rely on Data from the CFTC but it shows that the Long positions in the market place are held by small speculators. This is not an encouraging sign for the Market as there is a decreasing number of Net Long positions held by Institutional traders. (BUYER BEWARE) Normally the fast innovators in the market playing against Distribution in the consolidation phase will be fished out as investors are normally late into the selling and will sell into the momentum of a short term head fake (to the downside), as Market makers are putting in their next buys into the market.
Remember the saying, "Go away in May." Well, this could be the start of a declining market as light volume in this top side consolidation bounces off of lower highs. Contrarily, we are in a bullish trend, this could be an area of Consolidation where the market makers are distributing after a long run up, where a correction could be the next buying opportunity. Watch out for sell offs in this light volume and always use a stop. If you are not experienced trading th [...] day trading course
