Staying patient in this market is of huge importance.

I cannot stress it enough. Just because the market is open doesn’t mean you should be always trading it. I would love to have more positions open right now but I don’t because the market hasn’t shown that it is quite ready to start the second leg down in the current sell-off.

I know that the dead cat bounce is running into problems as we speak, but that is all we know. The last thing I want is a bunch of positions getting churned to pieces by the market’s indecision. 

So stay patient folks, if the market breaks the lows of the day today, that would probably be a good reason to get short a couple of positions – but stay nimble and be flexible to where the market ultimately wants to go. 

Here’s the bearish list of trade setups for the week:

bearish trade setups 10-7-14

    You are unauthorized to view this page.

You Might Like

  • Learn to trade within your means.

    Stop Trying to Hit Home Runs: Start Trading Within Your Means

  • Avoiding traps on stock breakout plays.

    How to Trade Breakouts Without Getting Trapped

  • how to manage your swing trades when it comes to headline risk.

    Managing Headline Risk: How to Survive the News Cycle Without Losing Your Mind