Set The Stop And Chill

Last week we talked about the “Hold Your nose and Buy” setup.

Not a prediction. A process.

We got what we were looking for.

The reversion from oversold showed up.

Breadth pushed back above 30%.

Price responded.

That was the signal.

And since then, the market has done what it tends to do after these setups.

It rallied.

Now comes the part most people mess up.

They think the work continues.

It doesn’t.

The hard part is already done.

Identifying the inflection point, stepping in when it feels uncomfortable, and defining your risk. 

That’s where the edge is.

The Hold Your Nose And Buy Signal (Last Week) 

From here, the job changes.

Set the stop and chill.

Set The Stop And Chill (This Week)

For me, that level is the 2025 April Low AVWAP. 

That’s my line in the sand.

If we lose it, we move on.

Until then, I’m giving this room to work.

Because even though the broader trend has been under pressure, this is how markets bottom in practice. 

Not in a straight line, but through sharp reversions that force positioning to adjust.

We’re not predicting THE bottom.

We’re operating within a tradable bottom condition.

Big difference.

I still don’t know what happens next.

But I do know this:

The risk was defined.
The entry was logical.
And now price is confirming.

That’s all I need.

Anyway, that’s my two cents.

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