There will be Blood
in the streets…
AJ Monte has put the importance of stop losses into this great article.
Take a look at today’s chart and imagine the pain being experienced by the longs who added to losing positions the past few days in an attempt to “average in”.
Remember Nucleus Accumbens?
The longs got hammered today after a weak attempt to convince the shorts they weren’t in control anymore. They showed the same respect for that idea as the Tijuana Tornado showed Migel Cotto Saturday.
The megaphone is shouting; is anyone listening?
In this post we suggested a head and shoulders top had formed the prior day. “Learning to see incomplete patterns before they are fully formed” is one of our key beliefs. The longer it takes us to recognize and act on a valid pattern, the less profits will be available to us.