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Market Reading

Chop

Also called: choppy, chopping, chopped, chop zone

A market environment with big moves in both directions that go nowhere, enormous candles, gaps everywhere, and no sustained trend. Choppy markets are way more dangerous than actual downtrends because they trick you into trying over and over since you keep getting just enough positive feedback to stay engaged.

In Context

The QQQ keeps fading each rally into the declining 10-week and at this point four consecutive weeks of that looks less like random chop and more like organized selling to me.

Death by a Thousand Cuts·Digest

The normal for the past two months is just chop.

Nothing's Changed Yet·Digest

**Three consecutive days of real growth participation for the first time since this chop started, and I think that's the most important thing that happened this week.

Three Days of Growth Participation·Digest

Chop and trend are two different markets Look at the two charts.

Three Days of Growth Participation·Digest

But until that happens or growth starts participating we're stuck in the chop.

Rotation to Defensive Names Continues·Digest

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