Commentary, Methodology

11/5/21 SOXL and Other Leveraged Bulls

The widely expected September weakness and turnaround in October actually happened. The weakness was quite mild while the strength was extraordinary.

SOXL made a double bottom, consolidated for a week or so on the sunny side of the 54 day SMA, and then almost doubled from October lows.. Seems like the imbeciles that bought Evergrande dollar bonds were just imbeciles with more money than brains and not the end of modern civilization. I can see their problem though, where else could they possibly put their money?

The white candles on the up elevator are nature’s way of telling you not to sell OC. That was already obvious on October 15. That’s one reason why it is dubious to mindlessly follow a simple algorithm. The sages tell us that is a way to take emotion out of trading. Getting a lobotomy might be better way to do that.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s