Anyone who jumped in at the start of this week, chasing momentum, is unlikely to be rewarded without some pain. That’s just how the market works — it rarely hands out profits to late entries without a shakeout. A clean V-shaped recovery is rare, especially after such a heavy selloff.
If this rebound is the real deal, and if we even go on to make new lows first, the principle holds even stronger: the market is not going to let late bulls escape untouched. They’ll be tested — emotionally and financially.
Even if the market has bottomed, don’t count on a smooth ride. Expect a trading range, expect some pullbacks, and don’t expect to catch the bottom and ride it straight up. There’s more price discovery to go through before a lasting rally emerges.
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This article was written by Itai Levitan at www.forexlive.com. Read More Details
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