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Is it too late to chase the S&P500?


  • markdmarkd mod
    edited January 21
    Who knows.

    The market is like a Rorschach test. You see what you want to see. Breakout traders would see this as an entry. Retracement traders would see this as a place to take profits. Longer term trend traders all ready in would see no reason to get out yet because the trend hasn't turned.

    So, the answer to your question depends on what you want from the markets.

  • I’m 67 and trying to cautiously grow my wealth by clipping a few percent here and there. I just took profits a week ago. Now I’m regretting that but not sure I want to jump back in here at an all time high. I could be waiting a while for a pullback though.

  • Oh and thanks for your comments.

  • On the PnF charts, something to take notice of are "long" columns of X's and O's. The long column lengths often/ always retrace to an extent. I call the long length X columns High Pole Columns. If there is a reversal to O's and the O length count exceeds 50% of the prior X count, a High Pole Warning is the pattern identified. The High Pole Warning is essentially a 50% retracement of the prior move.

    High Pole columns are nothing to be afraid of, but you have to expect a retracement to occur. In other words, don't be surprised when it does reverse.

    You'll note in the chart below, the 2020 year showed many long legs or high pole columns. They all retraced. In fact, the only one showing on this chart that hasn't retraced is...... the current column. I never recommend buying anything on a high pole column on the PnF chart. Wait for the retracement to play out.

  • Spyder500Spyder500
    edited January 22

    Thanks for your input. I’m not chasing it.

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