OK, I’m an American Idol fan. Otherwise, I have no business calling anyone “dawg.”
Anyway, the keeping it real part is like this: About two weeks ago, I started to get a feeling (from the charts) that the market was ready for a little correction. After all, no market runs in a straight line. After a few days of decline, the market was giving all sorts of small signals that it was time for the correction to end – low volume, hammer candle, support, moving averages.
And then none of it held and the market broke down. Do I blame the VIX over 50? That seems to be where nothing matters on the charts anymore.
Not really. There were a few technical signals that the pullback was something more. Since I was looking to buy the dip and not sell into the decline, here I am on the sidelines with no trading positions. I suppose that being in cash is no so bad.
Now the question is when to buy the slide and get ready for another short-term rally?
Isn’t it fun to be a trend follower in a trading range market – not!