As I look over my charts preparing for tomorrow and the week ahead, I'm reminded of an axiom; "Never fight the major trend". The major trend since 2002 is a bull market of course. While I see the NYSE at new highs and the S&Ps approaching new highs. I also see the Dow and COMPX at least 3% from their yearly highs, stochastics are overbought, and my EW market momentum indicator is still sinking. Thus, I'm getting neutral to negative signals. My particular strategy is to be near 100% long during the advances, and sidestep the declines, except for some special situations: like biotech breakouts with no news. Now, that's good all the time! My EW count suggests we're completing a countertrend advance in an intermedate term decline: COMPX. In fact, the advance displays nearly two identical zizags, combining for a 61.8% retracement. If i was a day trader: I'd go short with close stops. But I'm not, in fact I don't go short at all. The only time I actually shorted anything, was when I bought those Nikkei Put Warrants the banks issued before it collapsed. Remember those? All I'm trying to say is for you traders be careful out there. The market appears to be at a pivotal point. And, for us investors: worse case we complete the correction and the bull marches further along down wall street. Good luck this week! Tony
You've been a member for only 11 days and have already posted almost 100 times! Now thats impressive!
Recently I live on the computer, almost. Convalescing from an auto accident: badly broken leg. They're mostly short responses THX tony
I'm just teasing you. Sorry to hear about your accident. I wish you a speedy recovery! Happy Trading.