Bulls Fight Back
The market
turned green yesterday, but only slightly.
Volume was low, except on the Nasdaq, which by the way outpaced the other
indices.
Technology is turning, and DDIC and NSIT will need strength in the
Nasdaq to last if these trades are to hit my $14 and $20 price targets.
Both trade at near term support, and it is imperative neither falter
further.
Most of our trades are near must hold support. It's not an ideal
situation, and the skittishness in the market only makes it worse.
For the first time in months we may have to eat a string of losses.
But that happens. And it especially tends to happen as the trend
changes.
While it's advisable to stay with the trend as long as you can,
sometimes that could result in buying at a top or selling at a bottom.
Stop losses can prevent large defeats, but nothing can prevent the
shake-out volatility corresponding to market reversals. The fact is that
we are all slaves to the market's direction. And while certain trades can
fight the trend, 75% of them will move in the same direction of the
market. And sometimes that direction is sideways or down.
For now, we have a clear bullish trend. But as mentioned before, it
is long overdue to correct. We will continue to favor buyers, but all the
while understand that we may have a few losers as the market turns.
Every new position that is taken to the long side is speculative at
this juncture. If you are not an aggressive trader, or lack funding to
take a 9% hit, stay in cash.
TradeMaster
subscribers were
able to nail down outstanding gains because we were able to stick with
the bullish rally that started in late August. Even though a lot of
traders were skeptical of that rally and repeatedly called for a
reversal, we stayed long and strong.
That’s because, quite simply, I know what to look for before a
rally reverses.
And now, I am going to share some of his trend-following secrets in
a special video seminar. It’s called How to Trade
with the Trend for Maximum Profits. It will air this Friday,
March 4, at 6 pm ET. And best of all it’s completely FREE
for TradeMaster
Forecast readers.
