Connect with us

Trading

How the Pros Suckered the Amateurs in Last Friday’s Lunch Hour!

Published

on

No video today, but today’s piece is super important! Last Friday (June 9th) the Nasdaq fell by almost 4% at its lowest, and closed over 2½% down on the day. But what’s really interesting about it was that the serious downdraft only started after 12pm! Check out Guy Cohen’s analysis of the last Friday’s market.

Guy Cohen Gives a Quick Rundown of Last Friday’s Freefall

Observe the chart …

1. Just past 11am the Nasdaq reaches a new high. This suckers new buyers into the market, but very soon the market starts to retrace.

2. This is the bar starting at 12pm. The retracement is getting a head of steam … this is where the proverbials starting hitting the fan!

Guy Cohen Chart | How the Pros Suckered the Amateurs in Last Friday’s Lunch Hour!

3. This is the bar commencing at 1pm. It’s clear that the market has been caught completely cold and the early morning’s buyers are caught in a trap.

4. From now on it’s panic stations for anyone that was caught unawares.

So, what was this all about?

Raven_Steel_Ad-04
Raven_Steel_Ad-05

It was all about the amateurs being strung along to buy buy buy in the morning as new highs were reached… and then the big boys cut them loose and sold for all they were worth.

And also notice the timing … The big sell off occurred over the lunch break (on a Friday) while fewer eyes would have been paying attention.

Truly, this was a cynical attack on unsuspecting long players, and it worked a treat. They bought willingly, expecting the retracement to be soft and short lived, as those in the know were selling all their worth to them … and handing them their a$$!

Now, don’t get paranoid because this really doesn’t happen often. And frankly, I prefer getting stopped out in this type of scenario than to an opening gap down, because with this scenario I can exit in an orderly fashion. With a gap down it’s more painful.

So those of us that were sitting on profits, we simply took lower profits that we’d anticipated and it wasn’t calamitous.

That’s the beauty of a sensible trading plan like mine.

Bye for now,

Guy Cohen

Check out this video from FinancialBuzzMedia about last week’s Stock Market:

Now that’s how smart traders like Guy Cohen analyses the market. Just remember, always follow the sensible advice of real trades that always win!

Federal Reserve’s Rate Hike Meant to Slow Down the Dollar… Find out more here.

Follow us on Facebook and Twitter for more news updates!


The statements, views, and opinions of any article, contribution, editorial, or advertisement in this publication are not necessarily those of The Capitalist or its editorial staff, and are not considered an endorsement, sponsorship, or recommendation of any referenced product, service, issuer, or groups of issuers.

This publication provides general information about certain subjects, and should not be construed or taken as advice (legal, financial, investment, tax, or otherwise). Do not construe or take any information in this publication as a solicitation, offer, opinion, or recommendation to buy or sell any securities, bonds, or other financial instruments or to provide any legal, financial, investment, tax, or other advice or service about the suitability or profitability of any financial instruments or investments.

The Capitalist disclaims any liability for the accuracy of or your reliance on any statements, views, opinions, or information in this publication.


Featured image via Visual Hunt

Continue Reading

Subscribe To Our Newsletter:



Copyright © 2020 The Capitalist. his copyrighted material may not be republished without express permission. The information presented here is for general educational purposes only. MATERIAL CONNECTION DISCLOSURE: You should assume that this website has an affiliate relationship and/or another material connection to the persons or businesses mentioned in or linked to from this page and may receive commissions from purchases you make on subsequent web sites. You should not rely solely on information contained in this email to evaluate the product or service being endorsed. Always exercise due diligence before purchasing any product or service. This website contains advertisements.

[email]
[email]