I tightened up the diagonal trendline that we're following and changed it to a blue color for it to stand out. I moved it a bit to catch as many candle closes as i could from the past that tagged that line, it's much more accurate now. Today you can see the S&P closed right under it.
We haven't gotten a sell signal yet on the algorithm in timeframes above the 4 hour charts. This rally is a little long in the tooth. But again, we're going to wait for confirmation to go short.
It's always difficult to manage emotions when trading. Sometimes, we just feel our skills as a trader are just so finely tuned and that there's no way we could be wrong. We do also know though, that the stock market can remain irrational far longer than an individual can remain solvent.
So It's important to find a system that works, rather than hope and wish that you're on the right side of the trade.
There are so many factors that are aligning from a contrarian outlook as was pointed out in the previous blog posts here. Yes, I will be in a state of disbelief considering all of the clues if the market keeps floating higher in its fairytale rally and no sell signal is generated. But, I'd be happy that the trading algorithm organized my methodology and kept my emotions out of trouble.
Will keep you posted.
Disclosure: no positions