Hysterical market needs to chill
- Posted by admin
- on October 10th, 2011
V type markets can be tough as they don’t let the “wrong side” traders out to breathe — when we went down the poor longs couldn’t get out on any bounce, and now the shorts didn’t have a chance to cover as we ripped through the 50SMA. These can be vicious markets for contra-type traders.
Perfect V in $SPY — looking for mini Ws to come next.
However, that being said we had 8 out of 9 alerts (all long) trigger today from our newsletter– often when that happens and we run out of alerts it also coincides with a consolidation period in the market. V type moves never last — the healthiest thing for the market would be to enter a consolidation period near the 50SMA. Any such basing would set up many new longs, while continued running would create a higher probablity of a sharp move down.
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- Keep swimming but with an eye on the shore
- Make peace with not catching every move
- 21 days and counting
- Trade against it
- What’s your edge?
- Wait for it
- Keep Calm and Carry On
- Even if you don’t trade it, you have to watch it
- This is where we would buy AAPL
- No matter what your time-frame, be patient enough to trade against an edge