How To Avoid Getting Caught In “Down Draft” Days Like Today

After weeks of choppy to upward action the market just fell out of bed today. The media will blame the bearish action on Japan’s central bank actions, or weak European markets, or some economic data point. But that’s not the whole story.

It’s true, those “reasons” may be potential catalysts for a move, but they don’t always lead to general indexes declines of over 1% and several sector ETF’s getting hit by over 2%.

So how are you supposed to know that today’s the day that the news will rattle (or excite) traders enough to create a big trend day?!

Coincidentally, I created today’s video before the market open, and I had no idea at the time that the markets would be in such a bearish mood. However, it is the market’s mood that will tip you off to when the big trend days, and big reversal days are likely to occur.

Today’s video covers two topics that will help you navigate the current market trend, or lack of one.

It’s a short video but I begin with a follow up on my recent video suggesting that if the market doesn’t find new leadership the rally is likely to stall out. There are a couple promising candidates emerging, but today’s weak market will put them to the test.

Next, the video shows you exactly what to look for to determine if the market is likely to have a big trend day verses the likelihood that attempts to rally or sell off will turn into another choppy day.

You can profit from either situation – trend or chop, but it’s a lot easier when you can anticipate which will occur.

I’m sorry this video is not released in the morning since it would have called today’s trend down day nicely for you, but don’t worry about missing today. There will always be another big trend day, and even more choppy days, for you to profit from using this trading tactic.

 

Use the settings button to view in HD quality.

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Chee Hin Teh 8 years ago Member's comment

Thanks for sharing