Wednesday’s meltdown caused the NYSE Bullish Percent to drop from 22% to 17%. A drop to 16% would have signaled a reversal and I would have abandoned my bottom fishing expedition. Nonetheless, you have to stay with your trading system and methodology, or else what’s the point in having one?
I’ll give things one more day. If Thursday is down big time, the NYSE Bullish Percent should end up reversing back down below the 16% level, and I will get defensive with my equity posture again. In this environment, one thing we know is that things can go to extremes on the downside very quickly.
Yeah, the news is all bad. That’s what everybody is focusing on….so much so, that people could end up missing the obvious.
If you can count, take the following test. Let’s see how strong your powers of perception and observation are. Only half the people answer this correctly.[youtube:http://www.youtube.com/watch?v=XlasZy6KfzM 450 300] If you enjoy the content at iBankCoin, please follow us on Twitter