It’s the start of a new month and we now have completed monthly candles to look at. Personally I’m always pleased to see the back of January from a personal perspective however for traders its been quite a month hasn’t it?
I am at present reading (and thoroughly enjoying) Jesse Livermore: Boy Plunger the man who sold America Short in 1929 by Tom Rubython. After the first few chapters it becomes a real page -turner and despite it happening over 100 years ago is still fascinating and relevant today. Last night I was reading a piece and this quote of his stuck with me:
“And there is another thing to remember, and that is that a market does not culminate in one grand blaze of glory. Neither does it end with a sudden reversal of form. A market can and does often cease to be a bull market long before prices generally begin to break.” So said Jesse Livermore.
Paul Tudor Jones writes the forward for this book and he’s often said that trading reversals at the end of major trends is a very messy business. I would suggest that some of these charts are looking a bit messy so I’m keen to see if they present an opportunity for us.
I just covered Indices & Commodities today and will cover FX over the next two videos.
Enjoy and good luck with your trades this month.