Stock Market Capitulation Coming Soon? Hinted By Market Rotation Out From This Sector
Market rotation out from this defensive sector $Consumer Staples Select Sector SPDR Fund (XLP.US)$ could signal the start of stock market capitulation based on the analogue comparison of the global financial crisis in 2008.
Find out how to use analogue comparison as a bear market leading indicator on top of price volume analysis to better interpret the messages from the market $S&P 500 Index (.SPX.US)$ . Most importantly, to prepare yourself for the market bottom in order to ride the upcoming cyclical bull run.
Click and watch the video below on YouTube (Pro Tip: adjust the speed to 1.5–2X):
The bullish setup vs. bearish setup is 74 vs 722 from the screenshot of my stock screener below. This is still a clear bear market environment where shorting stands a better chance.
This is still a tough environment to trade (even for shorting) because of the super high volatility involved, which will whipsaw on both sides.
Risk management with proper position sizing is the only thing we have full control of. So do take advantage on that when you are trading, especially at this point.
Safe trading,
Ming Jong Tey
Ming Jong Tey
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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