I closed out of many of my long equity positions today. Tomorrow’s futures look very negative. Many of my profitable positions have become negative in the last few days. For me it’s time to preserve capital. A rising market on decreasing volume is reportedly long term negative. For me it’s a time for extreme caution if you have been a bull.
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There is no better way to produce a rally in the stock market than to post a chart and comments like this. :]
Any idea on that 'long term negative' portion? I see some movement in portions of the market, XBI for example, but I doubt if anything at this time will have legs.
goodguy
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@faronf, Good question. I’m think 3 courses from here are most likely. 1. This is the first wave down of a a-b-c correction down to and maybe to just below the lower channel line. Then up action takes over again. 2. Many sideways consolidations such as triangles start with violent first wave down. So we may see sideways up and down action for a couple of months likely large enough to trade. Then a final major move to the top of the channel. 3. And less likely I think is few days bounce here followed by a major bear move way below the channel that goes on for a couple of months. All just my best guess.