Record high volume yesterday on a down day in the Dow. Ouch.
Is it time to fade the rallies or should we be buying dips. That's the argument that is going on right now in the market place.
I am not going to comment on what you should be doing right now in this blog posting but what I will say is this.
IT DOESN'T MATTER.
Let me say that again. IT DOESN'T MATTER.
Why would I say something like that on the biggest volume day ever at the NYSE.
Here's a cruel reality of the marketplace.
It doesn't matter where the markets are headed. What matters most is you get the direction and timing right.
The reality is, all markets are trading markets. They are all driven by market sentiment and perception.
What matters most is that you get the direction of the market right. You can only determine the trend by using pure market action. The easiest way to do this is by using technical analysis and a program that tells you in plain english what the market is doing.
Here's a look at what our indicators are showing before the market opening on July 25th.
Has the first negative signal already occurred. Look at what we alerted short term MarketClub traders to 7/18. The red triangle indicates to get out not to go short. The key level for the DOW is 13,400. A move below this level alert intermediate term traders to exit the market.
Lastly what would totally turn the DOW into a true bear market according to out "Trade Triangle" formula is a move below the 13,000 level.
Right now the major trend remains positive for the DOW, but I still have this uneasy feeling this morning that sentiment and perception is changing.