May 16th, 2024

As Journey famously wrote, don’t stop believin’. The rally still has legs. No doubt the rally is getting a bit frothy up here, but Bollinger Bands continue to expand outward, indicating range expansion, and we haven’t made what I consider a ‘good high’. Bulls remain in complete control of the tape, and we can expect the tape to continue higher, but it will probably be choppy, making everyone second guess holding a long position.

When markets start working together across the board as we’re seeing right now, with RTY, ZN, ES, and NQ all moving higher with similar technical looks, you don’t want to fade these moves. I’ve been consistent in staying just on the long side, and although it’s not easy as the market always finds ways to get day traders out of positions, that is still my position right now… don’t stop believing.

Many want to complicate a tape like this, but I won’t. It’s a bullish tape, trade it small and smart from the long side. I remain solely focused on long setups, but let the market come to you, don’t chase it. Fading it because it’s hitting resistance may be good for a scalp, but don’t get married to any shorts. Keep it light and tight.

Cheers, DELI

Leave a Reply

Your email address will not be published. Required fields are marked *

Watch The Latest Livestreams with All Stars!

each week

Recent posts