If you've been looking for some variety in market action, today wasn't your day. The action today was almost exactly the same as we've seen every day so far this year. The dips were quickly bought and the market finished strong.
There is only one thing you need to know about playing in this market: don't fight the trend. In fact, not only shouldn't you fight the trend, you might want to embrace it with both arms and have faith it will never end.
This market favors the buy-and-hold investment. That is usually case during uptrends, but it is even more so in this market because it has been so lopsided. There's just no ebb and flow to the action, and that makes it very challenging to add long exposure. A more normal uptrend will dish out at least a few moments of weakness here and there, but this one isn't really doing that. Many market players believe this is due to the dominance of computerized trading. That sounds logical, but all I know is that it isn't easy to deal with when human psychology seems to no longer exist.
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1 comment:
Wow !! really nice blog. It will be very useful for me. So, thanks for sharing this post.
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