The One Trait All Top Traders Have In Common
At All About Trends, our mantra at all times is “Regardless of What the Market Throws at Us”.
After all that is a trait ALL top traders have in common and that is what ALL of you should be striving for vs. getting sucked up in all the Euro hoopla.
When looking at the daily charts, you can see we are hitting some resistance levels. What we want to do is give things a little time to sort themselves out which means PATIENCE with a capital P before we get too cute in any one side of the market here.
Even if we are ultimately going to work higher over time, we have to work off this recent spike we’ve seen the last three days which leads us to buy the dips (and cover shorts at the same time). That is IF we are going higher.
The name of that game with that scenario is First Thrust Up, Pullback Off Highs (POH) as the chart of watch list stock BLOX shows:
There is also a good possibility that IF we can’t roll over at some point this week that things become a chop fest in the indexes with things moving more towards everything being more of a market of stocks with issues trading to the beat of their own drum. Fine by us from a hit and run standpoint long or short. We’ll see about that though over the coming days.
In other words we need some chart time to see how things sort themselves out. We’ve overall done a great job in the hit and run dept. long and short and that’s where we want to keep our focus for the time being.
This all the while the indexes basically go nowhere. Sure they are at one month highs! Isn’t that great? On the surface it sounds great (according to headlines that flash across the screen) but when you look at the daily charts we are right back to where we were a little over 4-5 months ago depending upon what index one looks at — hence NOWHERE.
Can you see why we are more interested in hit and run and why you should be too?