Thursday, May 24, 2007

How Do We Play This Down Day

As Trader Mike pointed out, we received stochastic sell signals in the indices today. However, I am not yet ready to start selling. There is strong support in the 1490-1500 range, and until this level is violated, we should expect that buyers will step in. That is what happened the past few times we have had down days on higher than average volume, and I always like to stick with what works until it ceases to do so. In the meantime, I will honor my stops and watch the market temperature closely.


Lucas said...

good idea, but me thinks many people are getting ready to sell this puppy. Been wrong before though:) Keep up the good work.

The Market Speculator said...

That very well could happen. However, I don't like to make predictions.

I'll keep a close eye, and if support is violated, I'll be ready to sell.