A ‘deke’ is short for decoy

Across capital markets, I’m reading the tape whether certain prices can make a ‘higher high’.

If not, exhaustion is setting in.

I’m also watching for bearish outside reversal weeks across various securities.

Inversely, I’m not being paid enough to initiate any new long positions in anything making ‘lower lows’.

Markets are full of dekes.

Similar to when a catcher’s throw to 2nd base looks like its about to sail into centre field, way above the covering baseman……but it doesn’t.

Instead, the leaping shortstop catches the ball.

Upon landing, he looks into the outfield to make out that the ball was thrown too high for him to catch it.

He’s enticing the baserunner to step off 2nd base and ponder heading to 3rd base.

Alas, the shortstop tags him out, with the ‘supposed’ overthown baseball inside his glove.

Try to not get deked out.

November 28, 2022

by Rob Zdravevski

rob@karriasset.com.au