Image Source: Pexels

Don’t look now but once again, bulls are facing a wall of worry. That is not a bad thing – a wall of worry doesn’t mean stop trading!

(For those of you new to that term, a wall of worry occurs when the market keeps rising despite poor indicators or other negative factors.)

The wall has been rising for a month or so as the bulls quietly took control of the market trend and refused to yield. Their resilience is pretty remarkable! Interestingly enough, many non believers are refusing to participate in the bullish trend.

Traders and investors choosing to sit out the trend is not uncommon, especially after that very strong and painful move to the downside we experienced in April. Doubts about the economy, tariffs, trade wars, and inflation are still swirling as many wonder when these matters will resolve.

So while traders seem to have a timeline for these various resolutions, the real world does not. These leaves them frustrated. “Things are not good, so how can we trust the market trend? Even if all signals agree?”

A wall of worry doesn’t mean stop trading

This is the exact situation when you need to set aside your emotions and pay attention to what the markets are telling you. Markets recently had some very big upside moves on big volume. That in itself should be a wake up call!

I like to look for strong price moves that go right through moving averages and resistance points – and that’s what we’re seeing. I don’t understand why traders do not trust the indicators. What other signals are they waiting for? They will eventually be too late to the party and become even more frustrated when the market turns down for some corrective action (short- or intermediate-term).

If you have been sitting on the sidelines, waiting for the wall of worry to crumble, don’t beat yourself up for missing this latest big move to the upside. Remember that markets tend to rise more when the fewest amount of people are interested.

And don’t forget to follow the trend guideposts. They often show up early, and you’ll be in the game when others are still in doubt.

More By This Author:

Vistra Corp: Chart Analysis
A Time Spread Offers Great Rewards With Lower Risk
Visa Inc Chart Analysis