Trend Trading

Friday’s action put an exclamation point to the daily chart.

The market has bounced significantly off it’s winter lows, but the sell in May and go away traders took their profits as the market entered into the expected fib zone at the beginning of the week.

Day traders just need to get the intraday direction right, and we don’t need to know the long term direction.

That is not as easy as everyone makes it out to be, so I will let the arm chair analysts and Ivory tower pontificators theorize ad infinitum.

To make money, we need to be in the game, with real money, real targets, and real stop-losses.

The pullback this week is inconclusive. Was it the beginning of the end for the Bulls, or was it profit taking before launching another attack?

Time will tell.

All I needed to know was that the daily direction this week said lower, and trade accordingly until the evidence of the tape said otherwise.

Spirals of despair for the Bulls, at least temporarily.

“Bulls climb the staircase, but Bears jump out the window.”

Being aware of that old Wall Street adage helps us understand the different timing mechanisms required to successfully take trades in alignment with the short term trend.

Have a great Holiday weekend, and remember those who sacrificed their lives so that we might live in freedom and enjoy the right to life, liberty, and the pursuit of happiness.