Although the official monthly / quarterly (T+3) reporting performance for mutual funds is closed, Mr. BIG should continue to buy the dips in order to curtail any further weakness and contain (stabilize) price.
Yesterday’s price boundaries 1848 – 1835 were spot on, so we will continue to watch these levels for a shift in the demand / supply equation. IF price can find a strong bid, penetrate and convert above the 1848, THEN price targets remain 1852 – 55 zone, followed by 1857 – 60 zone. Failure to convert 1848 calls for pullback within prior session trading range, with 1840 – 42 being mid-range support. Violation of prior day low (PDL) 1834, targets 1823.50 – 1821.50.
Stay Flexible….ALWAYS USE STOPS!
I take the long term view. I am willing to lose in the short term. I understand that losses are a necessary cost of doing business, like inventory to a merchant. Drawdowns are viewed as temporary. I realize that my wins and winning periods are part of the broad process. Each trade is but one in a string of trades. What is happening now is one piece of a much larger puzzle. Because of this I do not get overly euphoric or despondent.