Wednesday, September 23, 2009
Changing of the guard?
Just as I wrote my post this morning on the strong mkt action, we get a reversal near the end of the day into negative territory. Could this be a changing of the guard? Sure this is but one day among many positive days. But it's enough to have me at least go to a more a cautious stance and initiate shorts again for my swing trades so that I am at least a bit more hedged.
Market continues to climb
I have a system in which I initiate swing trades. Normally lasting about 5 days on average. Just looking at the stats, it's obvious that the longs are profitable while the shorts have not been for the last months.
In trading the hard thing to do is usually the right thing to do. Despite my opinion of the market being overbought and climbing against bad fundamentals, I need to respect the market action and stop shorting. So now I only initiate trades on the long side until the market tells me otherwise. Perhaps this is signaling the top just as I recognize this about the market!
In trading the hard thing to do is usually the right thing to do. Despite my opinion of the market being overbought and climbing against bad fundamentals, I need to respect the market action and stop shorting. So now I only initiate trades on the long side until the market tells me otherwise. Perhaps this is signaling the top just as I recognize this about the market!
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