Most Bullish Month of 2022 Just Finished, Can It Sustain? August 1st Chart
As most following on me on Twitter know, I tweeted frequently in late June that July is the third most bullish month of the year seasonally, and it follows a late June seasonal low. While I trade *only* (strong emphasis) price action; seasonality and July delivered, putting in the greenest month of 2022 with a massive 9% rally. The last time we had a >9% month was the November 2020 low.
The month closed with another nearly straight trend upside trend day Friday, and Friday’s newsletter plan played out perfectly, I wrote: “I am holding my small runner, and may add if we are bull flagging above 4085 in the morning, or test it and spike back above 4100. My general lean tomorrow is that we continue up to 4130-40, dip there.” We dipped Friday to 4080, rallied to 4130-40, then ended the day there.
After 3 straight green days and a 9% month though, I expect trading to get much more complex now and tactical. In today’s newsletter I’ll be talking why, as well as zooming out the big picture patterns. I’ll then talk tomorrows trade plan