Contrary to popular opinion, trade exits are more important than trade entries, especially as it relates to when to take a loss. I certainly do not claim to have THE answer, I just know what works for me and what works for me is a visual line indicating when I should exit a trade.
What looked in early June to be a possible missile launch fizzled out over 10 days as we moved all the way back down to the lower support. My upper resistance line and my lower support line were both tapped within a five day period (please note I drew these lines BEFORE this happened).
Will the resistance on the WEEKLY chart keep the indices in check as we enter the traditionally weak to neutral summer months? Or will the S&P and the DOW find the strength to join the NASDAQ and push further past resistance? There is always the possibility of a summer rally!
Make sure you are ready to enter the battlefield because the next move could be a big one!
This is PART THREE of our series on accessing THE BATTLEFIELD TERRAIN (the current market conditions) before entering a trade. PREVIOUS POSTS IN THIS SERIES: INTRODUCTION PART ONE: ACCESSIBLE TERRAIN PART TWO: PRECIPITOUS HEIGHTS According to SUN TZU, one of our 5 star generals, TEMPORIZING GROUND is defined as ground where you [...]
