{"id":20535,"date":"2023-01-30T07:30:21","date_gmt":"2023-01-30T12:30:21","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=20535"},"modified":"2023-01-30T07:30:21","modified_gmt":"2023-01-30T12:30:21","slug":"keep-a-close-watch-on-this-bullish-market-bluff","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/keep-a-close-watch-on-this-bullish-market-bluff\/","title":{"rendered":"Keep a Close Watch on This Bullish Market Bluff"},"content":{"rendered":"

I’ve always been obsessed with strategy games.<\/p>\n

As a kid, it was all about Monopoly…<\/p>\n

Then in college, I fell in love with poker…<\/p>\n

Nowadays, I’m obsessed with trading.<\/p>\n

I find it fascinating that the rules of the game can change, but human behaviour always stays the same.<\/p>\n

And like with every game, there are different levels of skill you can reach as a player.<\/p>\n

When it comes specifically to strategy, there are three distinct levels…<\/p>\n

To see what I mean, let’s use poker as an example for these three levels…<\/p>\n

The first level is where you think only about your own cards.<\/p>\n

The second level is where you start thinking about what cards your opponent might be holding.<\/p>\n

The third level is where you manipulate your opponent into thinking you have certain cards, or bluffing.<\/p>\n

It’s no different with trading. And right now, I think the market might be bluffing a little bit…<\/p>\n

There’s this huge, bullish reversal pattern taking shape in the S&P 500. The only problem is that it’s too obvious<\/em>.<\/p>\n

You might have even spotted it yourself. It’s a large, inverse head and shoulders pattern.<\/p>\n

You can see it below…<\/p>\n

\"Chart\"<\/div>\n

The inverse head and shoulders is a classic reversal pattern. Once prices break through the neckline, traders will look for a very sharp move higher.<\/p>\n

But like I said, plenty of other folks have noticed this pattern too.<\/p>\n\n\n\n
\n

Free Trading Resources<\/strong><\/p>\n

Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Check out a couple of tweets from last week where some well-recognized accounts have notified their subscribers of this same pattern.<\/p>\n

The first tweet was viewed by over 200,000 people…<\/p>\n

\"Chart\"<\/div>\n
\"Chart\"<\/div>\n

But unfortunately, the market rarely rewards the popular trade.<\/p>\n

Traders that are only able to think about the first two levels of strategy will probably jump into this trade without thinking twice.<\/p>\n

But traders who can operate at the third<\/em> level will likely take a step back and wonder if this is simply too good to be true.<\/p>\n

I wouldn’t be surprised to see the market accelerate a bit further. But then… don’t be shocked if the rally sputters out and reverses violently.<\/p>\n

Of course, only time will tell if this is a valid setup or not.<\/p>\n

Another key to good trading is recognizing when you’re wrong to be able to pivot quickly.<\/p>\n

I’ll keep you updated if I see signs that the breakout of this inverse head and shoulders patterns is real.<\/p>\n

Happy trading,<\/p>\n

Imre Gams
Analyst, Market Minute<\/em><\/p>\n

<\/p>\n

Reader Mailbag<\/strong><\/h2>\n

Has there been a time when waiting on a trade to play out helped you avoid betting on a bad setup?<\/p>\n

Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com<\/a>.<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Traders that are only able to think about the first two levels of strategy will probably jump into this trade without thinking twice…<\/p>\n","protected":false},"author":49,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[76],"newsletter-type":[],"ticker":[],"class_list":["post-20535","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-imre-gams"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/20535","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/49"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=20535"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/20535\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=20535"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=20535"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=20535"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=20535"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=20535"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=20535"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=20535"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}