Market up, market down, now what.

There's a word for it, it's called volatility.

So now what do the BULLS and the BEARS do?

Here are the arguments for both sides

THE BULLISH ARGUMENT: The bulls argue that it's a global economy, interest rates are low, inflation is under control, we are awash in cash and the subprime fallout is under control.

THE BEARISH ARGUMENT: goes like this, interest rates are too low and have to go higher. Inflation is just around the corner. Subprime is going to be worse than anyone ever expected, and the dollar is in a free fall.

Let's examine the trends as the market sees it. We are using the DOW, but this can be applied to the other major indices.

DOW Short Term Trend: Negative

DOW Intermediate Term Trend: Positive (trend reverses on a move below 13,400)

DOW Long Term Trend: Positive (trend reverses on a move below

Look for volatility to rule as the battle between the bulls and the bears looks to continue.

Take a look at what we said on Jun 24th about the market and Blackstone Group.
I think you'll find it interesting.

The time to take care is now. Listen to the market as that is the only true answer to your financial future.


One thought on “Market up, market down, now what.

  1. I need to know a little more about how to use the triangle method. how do i choose just one stock? from the monthly first? then wait for the wkly then buy on the daily. it is always easy when i watch the videos, but i get stuck when i go use it. can you help through a couple of live trades so I can get the jist of it. It all makes sense, but it is always in the past. thks, willwin member

    Dear Ray,

    Hopefully these answers will help... however like I tell all blog visitors, call me if you need further explanation. I am more than happy to help.

    Recent Trade Triangles - If you are looking for markets that recently switched their monthly, weekly, or daily trend then look to the "Recent Trade Triangle" search. For stocks we can use the monthly as an overall trend indicator and a possible entry point (if you can find this signal close to the triangle issue date).  Then as you know for equities you can look to the weekly for entries and exits. (If you are a much  shorter time frame trader... you can look to the weekly for trend and the daily for timing - however... with this method you must make sure that  the market has adequate trending, moving averages, volume, to avoid whipsaws.

    You could potentially enter the market on a monthly trade triangle and then look to the weekly for exit and reentry until the monthly trend has changed again. Let's look at the below for example...

    We saw that the monthly changed trend on 7-30. We could potentially take this as an initial entry point and then watch the weekly for a red (out) and then follow the weekly so on and so forth until the monthly trend was to turned to red again.  I hope this makes sense. Please call me if you are confused. I would suggest referring to my Amazon blog. Follow along with the charts to understand the concept of using the two time frame charts to filter the trades. Thanks!

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