Friday, October 2, 2009
over the last year we have watched the trends roll around the globe with the earth's rotation. Asia was down 2.5% last night, Euroland 1.4% and the pre-market is down.
Again, stops and awareness will do the job for you. CAPT. Namo may decide to color within the lines and go a bit deeper oversold, which yet remains to be seen. Dont be surprised to see the CCI panel go a bit deeper, as it still can. As you have just seen in the OverBought category, extreme positions can stay extreme, to the level of irrationality even if it causes you anxiety, but they always revert to the mean.
If you get stopped out, understand your building cash for the next move, and no matter how scary this move, there will be a next move. Bigger, smaller, shorter, taller, weaker or stronger, for better or for worse there will be a next move and you will thus have cash to participate.