Let's face it, the Dow Jones Industrial Average has begun a picture perfect down trend. Now is the time (during this leg up) to go ahead and pull out of most of our bullish positions that are barely hanging on to before the market begins to head down again. I'm not suggesting to exit positions that are still trending up. I'm referring to any positions you wish you got out of but stuck with a little too long. The opportunity may be now.
Consider how Investopedia.com describes a down trend.
The challenge is that many are saying the market is fundamentally strong. (I'll take their word for it). But from a technical stand point the market is bearish. I usually like to trade with the fundamentals and technical picture in my favor. Recommendation: pick stocks with poor fundamentals and are technically doomed, wait to see if the market indeed pulls back at resistance and fire away on some bearish trades.
2 comments:
You're singing the same tune as TheInstitutional on the Zacks blog. Everyone else is hunting bargains, but TheInstitutional says the bears are firmly in charge.
He points to the Tbill yields as all the evidence he needs.
Thanks for your input. I borrowed this from the Zacks blog:
It appears clear to me that it is not over yet and that we need to test the lows and make even new lows before the stock market will stabilize.
There are still some skeletons hidden into financial companies and the shadow of a possible recession.
Stay short and do your homework for when the wind will change and will be buy time again, now it is in Bears hands!
I believe this is true until the market shows me otherwise. After all...the trend is our friend, right?
Best wishes!
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