Dear Readers, i have not been posting as regularly as i would have loved to due to a change in my working environment. Once i have settled down, i will be looking to post more stock charts and analysis of the overall general market sentiment.
Meanwhile, let's take a look at the S&P500 chart. Do note that trading is still on at the time of this post.
Overall market sentiment is breaking down and moving lower. This has indeed become a "short the rally" market as many investors would be anxious to dump their holdings if the market does ever rally. The market is weak and might not move that high up at this moment. If you are a long trader and have no position at this moment, i would suggest that you be patient and wait for proper stock base to form before jumping in. Protect your capital is everything in trading.
If you are short selling the market, congratulations! I am sure you are making huge profit by now. The market appears to be trending lower and in my opinion, the best strategy to employ for this market would be trend-trading. Do note to trail your stop behind your profit at important level accordingly to lock in your profit. Trend traders never sell at the bottom. Instead, we milk the meat of the move.
And remember what Jesse Livermore used to say: "It never was my thinking that made the big money for me. It always was my sitting." Stocks never move up or down in one straight line. It always zig zag up or down. Have the conviction to stay with your trade and refrain from being shake out by the small fluctuation in stock price.
Not the time to be long, in my opinion. Sell into the rally!
Meanwhile, let's take a look at the S&P500 chart. Do note that trading is still on at the time of this post.
Overall market sentiment is breaking down and moving lower. This has indeed become a "short the rally" market as many investors would be anxious to dump their holdings if the market does ever rally. The market is weak and might not move that high up at this moment. If you are a long trader and have no position at this moment, i would suggest that you be patient and wait for proper stock base to form before jumping in. Protect your capital is everything in trading.
If you are short selling the market, congratulations! I am sure you are making huge profit by now. The market appears to be trending lower and in my opinion, the best strategy to employ for this market would be trend-trading. Do note to trail your stop behind your profit at important level accordingly to lock in your profit. Trend traders never sell at the bottom. Instead, we milk the meat of the move.
And remember what Jesse Livermore used to say: "It never was my thinking that made the big money for me. It always was my sitting." Stocks never move up or down in one straight line. It always zig zag up or down. Have the conviction to stay with your trade and refrain from being shake out by the small fluctuation in stock price.
Not the time to be long, in my opinion. Sell into the rally!
No comments:
Post a Comment