Quiet consolidation near highs typifies current action with no real change in trade strategy outlined in yesterday’s blog post. Here is a re-posting:
Prior Cycle targets have already been achieved, so today can either go the way of bulls or bears…If the bulls continue their torrid buying, penetration and conversion of 1840.25 high increases probabilities of an accelerated move to 1846 – 50 zone. Failure to convert recent high, calls for pullback to retest 1830 32 zone..Any deeper pullback below this zone targets the 3D CPZ between 1826 – 29 zone. Current momentum suggests higher likelihood of 1850′s being within reach, but as we know markets can reverse at anytime, so we remain disciplined with our trading.
Remain Vigilant and 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.