Time frames are much more important in a bear market than in a bull market. This is because some of the best trading in bear markets is in the counter-trend moves that typically don't last that long. If you are using the wrong time frames when trying to catch bear market bounces, you have the potential to be hit hard.
We have a good illustration of how very short-term trading is driving the action right now. Thursday started slowly, but traders were able to generate some action and were chasing speculative names, but it ended quite abruptly about 45 minutes into the trading day. Indexes are now at their lows and dropping as breadth goes negative.
Traders with very short time frames are creating some upside movement, but they hit the eject button very fast, and if you aren't quick enough, you will be burned. In a bull market, the rising trend will bail you out if you have a longer-term time frame, but in a bear market, that is how you get buried very fast.
While we may see some decent upside trading in very short-term time frames, the big issue is that we are heading into the Federal Reserve interest rate decision next Wednesday afternoon, and it is unlikely that there will be a desire to load up long positions when Chair Jerome Powell announces a rate hike of 0.75% or more.
The hopeful bulls will tell us this is already discounted to some degree, but I question that assertion. This market has been consistently underestimating the Fed's hawkishness and has paid the price for it.
I've been playing the very short-term trading game with some picks like Aehr Test Systems (AEHR) , Genius Sports Limited (GENI) , Eos Energy Enterprises (EOSE) , ViewRay (VRAY) , and a few others, but I am maintaining very high cash levels and am not anticipating that a market bottom is forming.
Be very clear about those time frames if you are trading. There is opportunity, but it doesn't last very long.