Wang's Happy Trading

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Going to Hell in a handbasket?

A strong move to the downside with the markets undercutting some significant support…again.  Horrible breadth today as the market started weak and just puked up any bull that was left in the neighborhood.  Volatility kicked up again as rumors continue to persist about hedgefund redemptions and the like.  Whatever the case, selling is selling…and there is probably more down the road.  Earnings are in focus, and Apple’s latest couldn’t pull the market higher.  Hunker down folks, it’s going to be a rough go!

It’s been a long, drawn out bear market.  But is this the beginning?  Remember my definitions of bull and bear markets:  A bull market is one the goes up, a bear market is one that does NOT go up.  So, that’s right…a bear market includes one that goes nowhere.  Some day we’ll stop going down, but that’s not for us to decide or pick when it happens.  We ride trends until they end, then reverse course.  I say this as over the last seven plus weeks we’ve made nice killing on the market downside.  It’s not by chance or luck this occurred, rather there was chart evidence pointing to this high probability.  There are no certainties in playing the market, but we play the odds.  I encourage everyone to review their trading and look at the landscape that is out there, pay attention to the charts and go with the trends!  Some nice winnings today for Bagger and friends, and while we bailed out a bit early….no matter, we aren’t greedy!  We do have a couple more wins in the oven, and look to take some more off the table this week![Y]