MSOS Timing Cycle Suggests Strength Into Month-End

 

Looking at the daily chart of MSOS, the first thing that jumps out at me is the 50-day cycle plotted at the bottom. This cycle has been incredibly accurate going back to last year, and whenever a market displays such a reliable rhythm, I make it a priority to pay close attention. Markets don’t always give us clean timing tools, but when one does, I try to respect it.

Based on the current read, the 50-day cycle appears to have bottomed roughly two weeks ago, and since then we’ve started to turn higher. That shift lines up almost perfectly with what price is doing. We’re also just now breaking above the downtrend line drawn from the October high. Seeing the cycle turn up and price push through resistance at the same time gives me more confidence that the low is in.

According to the rhythm of this cycle, MSOS should continue trending higher into the end of this month. If the longer-term cycles which aren’t shown on this chart have indeed turned up as well, then the high for this move should occur in early January. This phenomenon is known as right translation, which simply means that during bull phases, cycle peaks tend to occur later in the cycle.

For now, I’m keeping things simple, the cycle is rising, price is breaking out, and the timing supports further strength. At the very least, I’m expecting a rally into month-end, with the potential for more if the bigger cycles confirm.

TSLA Daily Chart Update: Where the Buyers and Sellers Stand

 Above is a daily chart of TSLA, and it’s been doing an impressive job testing and bouncing off the rising trendline drawn from the April lows. This trendline has acted as a solid support level over the past several months, confirming the overall bullish structure in the stock.

We’re now approaching key resistance in the 467 to 489 range, a level that has already been tested three times. Whenever price approaches a well-established resistance zone like this, it’s important to pay attention to volume behavior. Over the past three trading days, volume has been declining, which is a cautionary signal. Lower volume as the stock moves higher often indicates that buying enthusiasm is waning, making a pullback more likely in the near term.

Ideally, for TSLA to continue pushing higher into this resistance zone, we would want to see an expansion in volume, showing renewed buying pressure. At the moment, however, the declining volume suggests we may see a short-term pullback before another buying opportunity emerges.

That said, the bullish trend remains intact as long as TSLA stays above the rising trendline. This trendline has proven to be a reliable guide for identifying support levels, and it provides a clear reference point for traders. In my view, staying above this trendline keeps TSLA in a favorable position, and pullbacks near support should be viewed as potential entry points for those looking to participate in the next leg higher.

For more of my daily market breakdowns, you can head over to my homepage: https://therelativestrengthtrader.blogspot.com/

Tracking the Correlation: Why Bitcoin’s Lower High Matters

 

Above is a 4-hour chart of Bitcoin futures, and in the lower pane I’ve plotted the E-mini S&P 500. The first thing that really stands out to me is how closely these two markets tend to track each other. Some people love to argue that the S&P has nothing to do with Bitcoin, that one is a risk on tech proxy and the other is some independent digital asset, but when I actually look at the charts I see a different story. The price action tells me that these markets often move in tandem, meaning they make highs and lows at roughly the same time.

For me, that correlation is important because it gives context to what Bitcoin is doing beneath the surface. When two markets with very different narratives still line up structurally, it tells me the same institutional flows may be influencing both.

Now take a look at point B on the chart. Bitcoin is making a lower high compared to point A, which is always something I pay attention to because it can signal exhaustion. But at the same time, the S&P 500 just made a slightly higher high today. That divergence really catches my eye. When a correlated market makes a new high while the other fails to confirm it, it often has bearish implications for the weaker one and in this case, that’s Bitcoin.

Going into next week, I’ll be watching Bitcoin closely for breaks of support. If those levels start giving way, I’ll be looking for short entries based on this divergence setup.

Follow Your Own Light: The Key to Trading Success

 

Trading can be overwhelming. There are so many indicators, systems, and strategies out there, and it's easy to get lost in the noise. Over the years, however, I've learned one essential truth, every trader must follow his/her own light. What works for someone else may not work for you, and that's okay. Find what resonates with you, what makes sense, then learn everything you can about it.

Finding What Resonates

That guiding light for me has always been relative strength. Unlike so many technical indicators, which will wildly fluctuate depending on your inputs or the timeframe you're looking at, relative strength is tangible, it is a measure of how a stock is performing versus the market or a benchmark. It doesn't change because I fiddle with the moving average or go from a daily to an hourly chart. It's real; it's consistent; and it tells a clear story.

It finally happened, but not overnight. I had tried dozens of indicators, read books, watched videos, and also followed other traders. Some systems appeared to be good on paper, yet didn't fit my perception of the market. Others were too complicated, either using numerous confirmations or rules that seemed arbitrary. I realized then that if I was going to make it, I had to find the approach that resonated with me, the one I could understand deeply and instinctively trust.

Conquering Your Chosen Path

Once I found relative strength, the search for the perfect system became less important; it was, instead, about learning as much as I could about relative strength. I studied how it acts at market tops and bottoms, how it acts relative to volume, and how leaders emerge over time. I experimented, taking lots of notes and tracking down endless amounts of results. The deeper I dove, the more intuitive it became. I wasn’t just following a rule; I was learning to read the market in a way that felt natural to me.

This is the important part about following your own light: mastery comes from focus and persistence. You can't rely on an indicator or system if you've only scratched the surface. You have to understand its strengths, its limitations, and how to interpret it in context. The more familiar it becomes, the more confident you can be in your decisions, and confidence is everything in trading.

Trusting Your Own Process

The journey of trading is personal. What works for me might not work for you, and vice versa. Some traders find their 'light' in Fibonacci retracements, others in moving averages, while others may use the most complex algorithms. Mine is relative strength. The key here is not in comparison; it's in self-discovery. You have got to trust your own process and be willing to commit fully to it. Following your own light also means being patient. The market will test you and there will be times when you doubt your approach. But the more you understand your chosen method, the more resilient you become. You learn to trust what you see and feel in the market rather than what someone else tells you.

Final Thoughts 

What works for one individual might not work for another, so every trader must find the tool, indicator, or philosophy that resonates with them. To me, it is relative strength because it is real, consistent, and understandable. To you, it could be anything. The most important thing is to find your own light, learn all about it, and then follow it with confidence. That is how actual mastery and consistent results are built.

Relative Weakness in NFLX You Can’t Ignore

 Above is a 60-minute chart of NFLX with the SPY plotted in the lower pane, and while I’ve been a long-term fan of Netflix as a company and as a stock, I can’t ignore what the price action is telling me right now. One of the most important lessons I’ve learned in trading is that even the strongest long-term winners can go through periods of relative weakness, and that’s exactly what I’m seeing unfold at the moment.

If you look closely, the SPY is either making a higher high or at least retesting the highs we saw about three weeks ago. But NFLX? It’s not even close. Instead of matching that strength, it’s printing a noticeably lower high. The white trendlines on the chart make this contrast incredibly clear. When the market is strong and a leading stock lags behind, that’s often a warning sign that shouldn’t be brushed aside. This divergence is what I call true relative weakness, it’s subtle at first, then obvious in hindsight.

Heading into the next session, I’m keeping a close eye on today’s low at 101.77. If NFLX breaks below that level, it could easily trigger a continuation move to the downside. And with the psychological $100 level sitting just beneath, that zone becomes an even more natural magnet for price. Traders will be watching it, algorithms will be watching it, and I will be too.

For now, NFLX stays on my radar, not as a long-term investment story, but as a short-term relative weakness setup that deserves respect.

For more of my daily market breakdowns, you can head over to my homepage: https://therelativestrengthtrader.blogspot.com/