The stock market is currently in a LEGO state of mind. What do I mean by that? Notice in the S&P FUTURES chart below that I have my candles painted green for bullish and red for bearish. I like a lot of color. Notice also the neat little boxes where the green and red candles have enjoyed one another’s company and are staked next to each other like, you guessed it, green and red LEGOs.
In a LEGO market I find the following characteristics:
1. Tight, range bound prices designed to kick the living daylights out of any trader who looks at a 60 minute or above chart or any trader who thinks she can guess where THE bottom or THE top is.
2. Tight, range bound prices after an extended move. Extended being relative to what has come before of course. LEGOs are usually stacked high only to fall down and be rebuilt again. They are rebuilding right now.
3. Tight, range bound prices whose next move will be judged on how many LEGOs were stacked before being torn apart for rebuilding. The bigger the stack the bigger the next move.
4. Tight, range bound prices that have nothing to do with consensus estimates or economic mumbo jumbo, only the indecisiveness of market participants who are playing chicken with other people’s money. Once a decision is made… ALL ABOARD!
So much for my LEGO market and my childish attitude but I am a trader you know and I call it as I see it.
Great, very creative as a Lego player is supposed to be.
Actually we have many Legos stacked, so we can expect for a bottleneck when the gates open!
do i buy lego stocks or do i not i can’t understand stock mumbo jumbo???
I believe you misunderstand the post: lego market is a sideways market that is all. I personally do not trade anything in a sideways market.