In The What If Scenario

Since we're in uncharted waters for most traders, let's go a little deeper.

First, keep in mind that a daily close above Wednesday's high will suspend the downside probabilities in the short term.

Second, if markets do continue lower - here's the game plan...

Stay safe and don't be a cowboy or cowgirl.  

Wait for the market to put in the low so we have something tangible to trade against.

The bottom could come in much lower than conventional wisdom would believe.  You never know.

In the event the trap door opens, and stocks go on red tag sale - we need numbers.

Each chart below contains one number.  We have no idea if these prices will come into view anytime soon, but why not have them in our back pocket?

Disclaimer:  They seem ridiculous [now] and may never happen

Keep in mind, IF any of these stocks reach any of these numbers (or lower) in the next few days, almost nobody will be a buyer. It will feel like the world is ending. 

Wherever the market decides to find the bottom, all these stocks will rally along with the entire world.

About the Author

Trading and investing in markets is second nature to some, but a mystery to others. The goal is to provide a forum where everyday people aspiring to be part time or full time traders will learn how view markets differently and profit beyond their wildest dreams.

Leave a Reply 24 comments

Grant Wilkinson - December 19, 2018 Reply

Great Stuff David . Do you ever sleep ? No rush to buy anything lets see what earnings bring us in 5 weeks time . Keep up the good work

    David Frost - December 20, 2018 Reply

    Thank you. I’m doing the work anyway, might as well share it.

      Fausto C - December 23, 2018 Reply

      I really appreciate you sharing this. All my support levels that I had plotted have not held up, obviously my imagination for just how bad things can get needs to improve.

    Vitor - December 20, 2018 Reply

    David sleeps on the weekends 🙂

Chad W - December 19, 2018 Reply

Thank you, I’ve been sitting on 60% cash for awhile, I hope I have the courage and knowledge to put it to work when the time comes. I see 2100 on the SP500 coming. Thanks for all you do.

    David Frost - December 20, 2018 Reply

    You don’t have to be the first one to the party, just be there when you know it’s already started…

David - December 19, 2018 Reply

Dave,

I am in awe at your efforts of trying to keep this community safe. I do appreciate the fact that you are advising people that indeed much lower prices in the market can be seen, and I agree with you. I’m just speechless at your effort of trying to protect this community. I appreciate you more for that…

Regards,

David Tarin

    David Frost - December 20, 2018 Reply

    Pay it forward.

Tom Rucker - December 19, 2018 Reply

Going to take your Lazy Trader course as soon as I can see something coming at me other than more hospital and doctor bills. In the meantime I will just enjoy your daily wrap. Love it and respect your esteem knowledge of the market. Merry Christmas and Happy New my friend

    David Frost - December 20, 2018 Reply

    God Speed

Robert Reese - December 19, 2018 Reply

Thanks for the update. For finding bottoms I have used Heikin Ashi charts and stochastics crossovers along with a regular candlestick chart. So far it has worked very well and the back testing shows good results. Just my 2 cents, I’m always looking for a better way.

    David Frost - December 20, 2018 Reply

    Definitely look elsewhere from those lagging indicators.

Craig - December 19, 2018 Reply

Wow, Christmas came early, thanks Dave!

All added to my alerts. Going to be crazy times if the emails start rolling in.

    David Frost - December 20, 2018 Reply

    Crazy prices for crazy times – never know.

Joseph Agoglia - December 20, 2018 Reply

Thanks David-
Your efforts to try to help us gain insights into your lifetime of learning, studying, testing and extensive experience are the epitome of kindness and paying it forward. The markets are so complex and tricky – the average retail investors is just standing in line waiting to be slaughtered and destroyed.
You are teaching us much more then stocks, you are teaching us major life lessons.
Thanks again so much and Blessings!

    David Frost - December 20, 2018 Reply

    No point in taking it with me…

Irv S - December 20, 2018 Reply

Thanks Dave, for all u do, you go above and beyond and u just don’t see that anymore…before I got your training I was a lost sheep…. not so anymore…I truly do look at markets “very” differently now…Thanks to You!

Colleen - December 20, 2018 Reply

You truly have a gift, and have been giving! Still waiting for the vix to give us a spike over 30. Thank you and appreciate your market analysis!
Colleen – Michigan

Randall R - December 20, 2018 Reply

Thank you for the information. I do appreciate your analysis. Up until now I couldn’t believe that the markets could get this ugly. I will be keeping the charts you sent in my back pocket and hoping I don’t need them right now.

Thanks again. You’re awesome.

David Frost - December 20, 2018 Reply

Slow and steady wins the race, one candle stick at a time.

Jay G - December 20, 2018 Reply

Thanks David – great work as always. Appreciate the analysis and charts

Roddy Kennedy - December 20, 2018 Reply

Excellent work, David… your dedication to helping us is super appreciated… Thanks a million times over!

Fausto C - December 20, 2018 Reply

Struggling here. The psychology factor right now is too intense. 2 positions open and if I close them for a 5% loss then a huge amount of money will be trapped for 2 days of settlement so I could miss a rally.

Bill - January 23, 2019 Reply

WOW! Thanks for the share David, seems pretty dire?

If some of these levels do come to fruition, you’ll find me cowering under my bed in the fetal position. Looks like a pretty solid open this morning.

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