1/31/2011 Market review | Bulls on Wall Street

1/31/2011 Market review

 
Morning folks.  Friday was a bit of a bloodbath in the market. This week will be key to see if we get more confirmation of a downward move. WE have pierced below the 20dma.  By no means does that mean we have a market breakdown but it is a big red flag as we got a market breakout, then breakout failure, then a breakdown of the 20dma.  We still need price confirmation of a breakdown so we will keep an eye on that.
 
Be very very careful with swings.  This is a good time to reduce your position size and cut ur port risk.
 
Be mindful of overtrading and fighting the tape.  This is a good time to be more selective on your trades.
 
I will be keeping cash levels of 70% plus for the time being.
 
 


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