The market has held strong following the Trump election and as of yet my trend reversal indicator remains bullish.
Obviously that can always change at any given time, so even in the most bullish of markets, you want to be managing your stops and curbing your risk exposure. Right now, the SharePlanner Trend Reversal Indicator is still strong, though at extremes, it has done that for ages now. There is nothing new about that.
But could it end soon?
Possibly, days like we are having of late feel good to our morale. Makes you think you can’t do anything wrong in this market. You have to be careful though because these markets all come to an end, and the majority of traders will ultimately give back everything they made. Avoid doubling down on trades, that is where a lot of people will get themselves in trouble when this market grinds to a halt. They’ll see every dip an opportunity worth buying. And who shouldn’t, every dip has been worth buying of late, but that doesn’t mean you lose your discipline in the process. Always manage risk, always manage profits, always avoid unnecessary pitfalls and amateur trading decisions.
Trend Reversal Indicator
Going into tomorrow, you are going to want to see whether this market can follow through on today’s breakout move. Yes, there have been plenty of breakouts a long the way, but this is the first one that has had a daily range of more than 1% in more than fifty trading sessions. So yes, today’s a bit more special than other rallies, but it won’t be if it can’t rally tomorrow. Below is my take on the SharePlanner’s Trend Reversal Indicator: