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The last two
weeks have been tremendous for Swing Trading. We were able to catch and ride
the down trend in the market. Since Swing Trading is based on trends, it
works very well when we get nice trends. Hopefully the market will keep
delivering nice trends.
We closed
most of our short positions on Friday because the down trend seems exhausted
for now. Basically, the downward momentum, the big sellers, look fat, happy
and tired. This does not mean that the over all down trend is over, just over
for now. We still think that the overall long term trend is a down trend, but
for now, it is taking a break.
So the
market may bounce here, come back up a bit due to profit taking and some
bargain hunters. We are planning on taking advantage of this bounce. Remember
that this is not an up trend, it is a bounce against the major trend. This
increases the risk of the long side trades and decreases their profit
potential.
The big
profits will return when the market resumes the long term trend. Trading is
always easier and more profitable when we trade with the major trend and not
against it. Make sure you treat the trades on the long side as snacks in
between the meals that the major trend gives you. Don't grab full plates,
just manage your hunger for now.
Hope this helps,
Shay Horowitz - ShogunTrading
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