In addition to our first class community and state of the art chat room inside the 12631 Trading Service, we also provide members with a Weekly Strategy Session post each weekend. Back on May 28th, after we had been looking for an initial correction in the market, we posted the following at the beginning of the strategy session:
“Three steps forward, two steps back; Three steps back, two steps forward…”
I expect the price action over the next month or so to resemble the above pattern. Tempering your emotions in either direction continues to be critical, given the corrective nature of the broad market since April. Until we see at least a few explosive days higher with broad participation, I suggest not embracing the exuberance associated with oversold rallies. True, we can play along. But we must be nimble and careful, as oversold rallies can fizzle out violently at a moment’s notice.
Again, this was one full month ago.
Instead of getting chopped to pieces with random action and headfakes galore, our members have by and large protected their capital and are in a great place in terms of both their portfolios and confidence levels to take advantage of when we next see a true high probability move in the market. A heavy cash position is something that is just now catching on, but we saw it coming and did not need to learn that lesson the hard way.
Don’t get caught off-guard by the next market move. Join the 12631 Trading Service inside The PPT today by clicking on this 12631 hyperlink and you will stay on top of the market, rather than feeling like the market is always on top of you.
