The bears have been lured into many traps over the past several weeks. Their eagerness to short at the first sign of weakness has been readily foiled throughout this uptrend. At some point, the bears will be correct. One way to avoid being too eager of a bear, as quaint as it sounds, is to use a simple support trendline.
On my daily S&P 500 chart, seen below, you will see that despite how heavy the market feels right now, it is still holding that support line (light blue) dating back to the beginning of the uptrend on September 1st. Should we lose that support trendline, my first move is to immediately raise more cash and to lock in profits on my key winners ($ATPG, $WYNN, $GS, etc) so as to avoid turning a winner into a loser. Of course, should support continue to hold, I will look for longs setting up.
Thus, maintaining your focus and agility is of the highest importance at this point in time.
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Are you using the 13 day simple?
No.
are you using a 52 week slow bollinger ichimoku rsi?
YES!
Thanks to you Chess I’m learning more patience before I get bearish.
The man has a hot hand. Chess, Thanks for all of your recent ideas. I find this stage of the market to be the most difficult to trade. Nothing is automatic anymore, and it takes great conscious effort to hold onto long positions.
LLEN just took off. Sir Chess wins again. Yogi stuffs big wad o’ bills in the pic-ki-nic basket. Thank you sir.
Thank you, Yogi. You are a class act and definitely one of my loyal readers. Very happy to see that you are banking coin. Let’ see if SHLD can rip higher.
Indeud.
I’ve been in SHLD for awhile too. My target has been 75, but I think it could go higher after a pause. Any thoughts?
Yes. With the short position in the name, strength will beget more strength, in my view. The squeeze will exaggerate the move.