After yesterdays rally (89% upside day) today was expected, but the NYSE advance-decline should give you a small degree of comfort if you are a bull. If you were quick enough in the morning you could have opened a long position in any ETF and gotten a better fill than I did yesterday. Looking at this chart below you’ll see that we were at the first level of resistance near 900 which has been a good area of irrational exuberance in the markets. 1500 is area where a pullback is almost a guarantee and taking profits is a must. Today’s action is completely normal.
I don’t see any reason to believe we’re not going to head higher, but I will reevaluate on a day to day basis and report any changes. This market can turn on a dime.
Quotes from“The Complete Turtle Trader”
“The successful trader is the one who codifies, the one who turns things into rules. Every idea that’s market-worthy must then be tested.”
“Since the markets are a zero-sum game, they (the turtles) must use different methods than everyone else in the game.”
