Friday, July 16, 2010

And the pull back begins...

The markets have gapped down and have fallen dramatically from the open this morning. How far and hard it will fall no one knows. However, based on the breadth indicators that I follow, especially the McClellan Summation Index which is on the verge making a higher high and higher low, I believe that an intermediate turn could be at hand. So my thinking is that any pullback we get now could fall short of previous lows. Yet I have learnt from past experiences that it pays better to simply go with the trend than try to out think the market. Although I will still have my "hypotheses" I plan to keep it simple: take my losses when my stops are hit or take my profits when my targets a met!

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