Daily Alert – Wednesday 29th June 2022: Stock traders start selling the rally

Mark NugentDaily Alert, June 2022

Daily Alert – Wednesday 29th June 2022: Stock traders start selling the rally

Good morning.

Buying the dip has been a simple yet effective strategy for some time now, especially in equities. However, an analysis by Bloomberg has shown evidence that this behaviour has changed and traders and investors are now selling the rallies. I discuss this in detail in the video. What this means is that a significant return to highs in equities may be some way off, but the action of selling the rallies does create a floor, or support, from which an ultimate significant rally can take place. I think this idea of selling the rally may explain yesterday’s sell-off in US equities for which I can see no other reason.

I got out of my WTI long trade at breakeven as it dipped below my entry price. It was only a small detour underwater but, as I always say, a will not watch a trade go negative. It’s the negative or loss-making trades that lead to loss-making accounts, so I will not be putting up with that. It’s the secret to my success. It’s not about the winners, it’s about minimising the losers.

Later today we have some inflation data from Germany, and other stuff.

I’ll be back tomorrow.

VIP Club members can see today’s video, all brief trading videos, the Monthly and YTD Performance videos, the Trading Video Course and download the MTM Indicators software HERE