Written on 02/01/2010 07: 56 PM by Craig
The stock market has taken a beating lately. Do not try to beat the market with sales on the long side. You will lose. Perfectly good trading setups can and will fail. It is the beginning of the year so that you do not want to spend the rest of the year trying to get stupid errors now!
The market is very oversold, so you can play a long rebound side this week if you do find one risk very low and you are nimble enough to get out if the market continues to tank. If not, just wait for a rebound play the short side.
There's a lot of work to do if you are not actually trading. You can run scans to look for the lining of bosses (double tops, triple tops tops, head and shoulders, etc.) so you'll be ready to trade on the short side, if the market rebound effect.
One final note:
It is possible that the market will recover fully from this recent decline (the weekly charts of the major indexes appear to be always fine). Therefore, if you are not negotiating on the short side, you can stay in cash and wait to see if it really does not happen.
Good Trading
No comments:
Post a Comment