The trend is your friend. Although this may sound simplistic, it can be much better applied when watching the candlestick charts. Simply stated, the downtrend remains in progress until you see a candlestick reversal signal and a close above the T-line. The early positive trading is not unusual in a downtrend, just as early selling in the day usually occurs an uptrend, followed by buying in the afternoon. Stay short with any long positions continuing to show very compelling reasons to stay long.
January 11th Daily Market Comments
The trend is your friend. Although this may sound simplistic, it can be much better applied when watching the candlestick charts. Simply stated, the downtrend remains in progress until you see a candlestick reversal signal and a close above the T-line. The early positive trading is not unusual in a downtrend, just as early selling in the day usually occurs an uptrend, followed by buying in the afternoon. Stay short with any long positions continuing to show very compelling reasons to stay long.