We could break that level before the end of the day, but time is limited as we are now in the final hour of trading.
With every trade I make, I constantly feel incredibly uncomfortable, not because I don't think I should be trading to the long side, but because when this market finally comes to grips with reality, it won't be a pretty site. I am using tighter stops than ever before with this market, mainly because of my huge distrust for this market and what is keeping it afloat.
With that said, there is no way in the world that you will could get me to pull the trigger on a swing-trade to the short side because there is absolutely zero, zilch, nada in terms of catalysts that the bears can sink their claws into.
At least back in 2011 when we were selling off by gross portions there was the fear that Europe was going to go belly up, but that was short lived and we are now of course trading at all time highs for the SPX.
This market can only keep heading higher as long as the Bernanke and his gang of misfits allow it to through the means of quantitative easing and POMO. Once that is done folks it is bad news for the markets and the world economy.
But until then, there is no need to change the bias to the long side - no matter how bad you hate doing it. Take what the market gives you and right now and it is only giving us opportunities to trade long.
Ryan (@shareplanner) specializes in swing trading strategies and is the founder of SharePlanner which he created to help and teach others on how to trade stocks better using multiple approaches and time frames. Each day you can count on Ryan to provide his trading advice as well as transparency in every trade that he makes. Ryan Mallory resides in Central Florida. More >>
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