The market sold off this week only to rally into the close. When an instrument prints near the high of the day at the close, this tells me two things. Firstly, the market is bullish (at this moment). And secondly, those holding long positions are bullish enough to take the overnight risk. Over a Bank Holiday weekend, the close is even longer.
What does this mean for the long term? Nothing. All we can gain from this is that in the short term the market is long.
It’s important to remember that everyone’s timeframes are different here. You may be a long-term investor, or you may be a trader – either way, it’s possible for two people to have a completely different opinion and both be right because their timeframes are different.
An intraday trader only cares about the trend within that session. A swing trader may only care about the trend for a few days or weeks. A long-term investor may not care what price they buy at now because they’re confident in their analysis that in three years the price will be much higher.
There are often arguments on Twitter about various stocks. Very often these can be settled by acknowledging…
Disclaimer: Please note all prices are for information only, they should not be relied upon for accuracy or trading. All prices quotes are based on CFD prices and are similar though not always identical to real exchange prices. STOCKTRKR or anybody connected with STOCKTRKR will not accept any liability for loss or damage arising from use of any information/commentary/charts or articles which is provided 'as is' for educational purposes only, nothing contained on this website should be considered as investment advice - please seek proper investment advice from registered financial broker or institution if you wish to trade on global markets and ensure you are familiar with the risks.
