Odd market..With the fade yesterday pretty much the text book play would be gap down. Looks like we reversed in the futures markets. this is bear market trading my friends. Full of reversals, no trend…nothing stays the same for more than 1 day. throw all our old swing strategeis from 3 months ago out the door and adapt them to the new market.
We are at a bit of a crossroads as most of the stocks and indexes are very bearish….but then some of them are showing a bottoming process. but for now cash is still king. As long as almost all the indices are under the 200dma average the rallies will get sold and traders will keep taking profits on all pop. So thats what we will do also.
Remember if u see gains to just take them or ride up your stops. No longer are stocks busting out for 30-40% gains. Be content chipping away with 5% gains for the time being.