Happy Thanksgiving from David of All About Trends!
HOUSEKEEPING: Today’s Mid Day update will also be the weekend newsletter. Markets are closed Thursday and only open a half of day on Friday. If we do anything Friday it would be a walking away/ locking gains type of trade. We’ll be monitoring things in the morning a bit and if we need to do anything you’ll hear about it. Might be best to monitor your email if anything that morning. And here we are going into a holiday weekend with more EU garbage taking center stage. All of which creates more fear which in turn amplifies the downswing as folks in the U.S. hit the sell button in the early going here and say I’m outta here for the rest of the week. This morning one of our astute forward thinking, objective, unemotional subscribers said this: Looks like the market is giving everybody some interesting conversation to chew on this Thanksgiving. Everyone will sit around Thursday and talk about how the market is crashing, not realizing the very oversold conditions we’re in. Chewing is an understatement, but we whole heartedly agree with him. Believe it or not even given the volatility we’ve seen out there since Sept. 1st the S&P 500 has lost 3% yet those who trade in tandem with us are ahead 6.5% over the same time period. This is even with taking a few losses and being a bit underwater with a few issues. All compliments of trading what we see, managing our state of mind (even keel) and of course the biggy of them all TRADE SIZE RISK MANAGEMENT. Everything we talk about here on a daily basis. Being short can be just as dangerous especially AFTER we fell like we have. Upon looking at the wave action I’ll tell you one thing. I sure would NOT be selling anything short right here. If I wouldn’t be selling anything short here should I be selling at all? Well yes if I’m one of those emotionally impulsive types who loves to get emotionally whipsawed I would be, BUT that is not who we are at All About Trends. Yesterday I touched upon testing testing testing and mentioned in a morbid sort of way we actually wanted to
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