For the most part, and since the June lows were put in, I would say about 90% of all my trades have been to the long side. But after reflecting, and pouring over some charts, I gotta say, that the climate for trading is looking more bearish than it has since we put in those June bottoms.
I'm not simply stating this because we had a decent sized sell-off on Friday, but because of what I am seeing in combination with the SharePlanner Reversal indicator nearing a bearish reversal trigger as well as the bear-wedge that has been forming off of the June lows (much like in the previous rally) and the heavy resistance we seem to be running into.
I'll continue to trade predominantly long, but my stops on existing positions will be much tighter and I won't hesitate to book gains if conditions continue to deteriorate. The reason is, that despite all that I'm saying in terms of potential market bearishness, nothing has really confirmed (yet) my suspcions. I don't want to front run, and therefore, I'm going to continue to trade in the same direction until I get some confirmation of sorts.
Here's the SPRI.
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 with a wife of seven years as well as one lively son. More >>
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