Contrarian Views

We've talked about it in this space a few times, but now we're going to be explicitly clear today. Whenever it feels like the social media majority is all looking for the same trade/move, plan for the opposite to happen. Since Friday, we saw numerous posts about who even knows, VIX 2020 some kind of set-up but the gist of it was Monday was going to be a brutal down day, nigh on a crash, bears were going to be feasting because they were short from the top. Here we are, it's Monday, and that hasn't happened. How do you tune out the noise and keep it from affecting your own trade thesis?

Don't get me wrong, I absolutely scan social media for trade ideas and research purposes. There are a lot of great resources out there to help you not only with your trading education and trading psychology, but also a lot of data and knowledge that CAN help inform your trade plan or trade thesis. Ultimately, though, you have to be able to synthesize and analyze that glut of information and be able to find the gold in the river full of rocks. That's where it gets difficult, because when you keep seeing the same ideas across your social media feed it can be easy to be convinced that idea is going to happen.

Typically, though, when the consensus is all going one direction, I stay attuned to the opposite side. While I try to remain unbiased going into each day, it does help me know that if the opposite trade happens, you may get a large continuation in that direction. Should you always fade social media? No. Should you be aware and prepared for multiple outcomes you show up to the desk and get ready to jump into the markets and take a trade? Absolutely. Trade smart, trade informed, and don't blindly jump into a trade because everyone on social media convinced you it would happen.

Here are today's NQ levels:

Current Price: 15175

Upside Targets: 15216, 15253, 1529, 15338

Downside Targets: 15125, 15074, 15046, 14996

Stretch Targets: 15383, 14955