in DayTradeToWin, Price action Trading

Big E-mini Price Drop Expected in Early 2021

Are you ready for the anticipated early January 2021 sell-off? John Paul, founder of DayTradeToWin, recently posted a prediction that a significant amount of bearish activity is expected with the E-mini S&P. The video below explains further. Using the DayTradeToWin.com indicators (ATO 2, Trade Scalper, Atlas Line, etc.), you should be able to find intraday selling opportunities during the expected sell-off week or two. For example, the Atlas Line can help determine if the day is expected to be a “down day”. If so, look for short signals on your other systems, such as the Trade Scalper. By all means, let a few days provide to you that you are seeing the sell-off.

Does this mean that 2021 will be a down year overall? Absolutely not. This prediction is to be fulfilled by another method John Paul teaches publicly, the January Effect. The January Effect for 2021 will be known February 1, 2021 after the full month of January has plotted on the chart. You see, if January 2021 closes higher than it opened, we can also expect the year to mimic this pattern. Therefore, the January Effect says, December 2021 will also close higher.

As to the causes of the sell-off to possibly come: hypothetical COVID-19 waves or mutant strains, new tax laws/policy, outgoing and incoming U.S. president actions, unprecedented Q4 2020 retail performance numbers, etc. There are many reasons while price could drop and continue to do so for days. If the January Effect is active for 2020, then yes, it is possible that the recovery of the market could occur through February, but John Paul believes the drop could be rather short with January 2021 reaching new highs by the end of the month.

Not every trader can afford to swing trade. Swing trading is often considered holding a position overnight or multiple days. There is increased risk in doing so. But often with increased risk comes the potential of increased reward. If you have a modest account size, looking for intraday shorts may be your best bet. This link may help you find the best day trading system for 2021.

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