Instead of obsessing over some quick counter-trend trades, I am letting this so-far healthy consolidation play out, still heavily long inside 12631 as I have been over the past several weeks. In hindsight, riding a sustained uptrend in the market seems like an easy task for swing traders–You just buy right and sit tight.
Of course, in real-time the challenge becomes trading with confidence without becoming so cocky and complacent that you recklessly disregard signs the market may be topping. Currently, the overwhelming technical evidence I see points to a continued trend higher, with rising daily chart moving averages on the senior indices coupled with a benign pullback this week. Today, the cyclicals are back outperforming again, with retail/discretionary stocks like DKS continuing to push higher.
As with most things in life, being relaxed and confident puts you in a position to have the best chance for success. There is no law that says you have to pile into a triple-levered short in the face of a strong market for a quick trade. In fact, it may not be anywhere as close to a sure thing as it seems.
Indeed, not over-thinking a resilient market is a great way to avoid unforced errors.
breadstick in a bow tie.
Its oil. What else could it be?
It could have been a power tool.
“Wonderful party, here’s a dog for the kids.”
lol