Stoic Trader Profile picture
Jan 27, 2023 11 tweets 10 min read Read on X
BULL TRAP THESIS 🧐

Read this comprehensive thread so you understand why this is the BIGGEST BULL TRAP that we have ever seen

#thread 🧵 Image
Let's start with JPOW & Interest Rates

Currently, Fed has been raising interest rates to battle inflation which puts downward pressure on the #StockMarket

So if Fed keeps raising rates, it's #bearish for #stocks & #crypto.

Raising Camign → Pause → Decreasing Campaign

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We are in a #BearMarket and this recent rally has sparked a lot of enthusiasm from #investors and #traders.

Bear Market Rallies are a common phenomenon during the Bear Market and usually have multiple selling climaxes and declining volume on the rallies.

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Now, I am going to dive into different charts to show you the confluence of what I am saying.

First up, $VIX 👑

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💡 Look for divergence when #VIX makes a lower low, #stocks should make a higher high and when it does not happen, we can anticipate a turn in the markets.

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💡 Indicies Divergence

Monitor Three Major Indices: #DOW #NASDAQ #SPY and look for divergence, all three indices should follow each other and make higher highs and lower lows in tandem. When it does not happen, we can anticipate a turn in the markets.

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💡 International #Bonds Divergence

Monitor International 10Y Bond Yields: #USA, #British, #German bonds and look for divergence.

Yield 📈 → Currency 📈 → Equities 📉

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💡 #DXY Dollar Index at MAJOR support!

If the #Dollar bounces from its MID RANGE support, we could see a 6% rally which would be very #bearish for #stocks and #crypto.

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#SP500 $ES_F $ES Technical Analysis

1. Liquidity Grab ✓
2. Displacement ✓
3. Structure Break ✓
4. Retracement ✓
5. Short inside Optimal Trade Entry ✓

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This new bullish sentiment across #stocks and #crypto is getting out of control, intelligent 🧐 investors call it "Irrational Exuberance"

F&ck around...

10🧵
Enjoyed this #thread?

Like & Retweet the first tweet to spread the message 🙏

Follow @StoicTA for more #TRADINGTIPS and #SwingTrading

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More from @StoicTA

Nov 22
Trader Mindset vs. Analyst Mindset 🧵

Most traders fail because they approach the market like analysts, trying to predict every move.

Here’s why that’s a mistake and how shifting to the Trader Mindset can transform your results.

Let’s dive in:
The Analyst Mindset

Analysts are obsessed with:
• Forecasting trends
• Building narratives about why markets move
• Being right at all costs

While this works for analysis, it’s a TRAP for traders. Why?
The Analyst Mindset leads to:

• Overthinking every trade
• Emotional attachment to predictions
• Frustration when the market “doesn’t behave”

The truth: Markets don’t care about your predictions.
Read 11 tweets
Apr 20
🧵 20 The Most Powerful Paradoxes That Will Change Your Life & Trading 👇 Image
The Growth Paradox Image
The Persuasion Paradox Image
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Jan 7
Weekends are for sharpening your edge 🧵
Image
1. MSB Trigger
2. Double BOS Entry
3. Trail Stop to the Target Image
In this case, we traded into an unmitigated zone that was left behind after a huge drop Image
Read 5 tweets
Jun 29, 2023
Do you want to know the most likely breakout direction from consolidation?

Measure the Range💡

📈Accumulation = price spends very little time below 50%
📉Distribution = price spends very little time above 50%
what do you see?
Read 4 tweets

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