Hello MarketClub members everywhere. I thought this would be a good time to review the events of the last seven trading days. First, we had Great Britain’s historic exit from the EU on July 23rd which immediately sent the markets of the world into a chaotic downward spiral with the DOW (INDEX:DJI) losing over 5% in just over 48 hours! After hitting a low of 17,063, the DOW abruptly reversed course in what I mistakenly labeled a “Dead cat bounce”. It was more like “Who let the cat out of the bag” as the markets proceeded to go up just as fast as they went down catching many traders on the wrong side of the market.
If you follow the Trade Triangles and I hope you do, you know that they were on the sidelines during this epic battle between the bulls and the bears where both sides were badly mauled and bruised. Having a position on the sidelines is a position - make no mistake about it. It's just as important as being long or short the market. If the market is undecided as to which direction it is headed why take a position in the market. Isn't it best just to stay on the sidelines until a trend develops that you can latch onto and make some big profits? Continue reading "This Is A Short But Important Trading Week"