Graph courtesy of www.bigcharts.com
Notice the heavy volume down days then the rebound on lower volume. As the market moved back up the volume became less and less until it approached the 50 day moving average and got hit to the downside again. Only last week I mentioned to my readers beware of the up days in a down trend. Very often we will see many triple digit up days on lower volume to suck people back in before it tumbles again. Wait for the follow through day before buying stock.
It's time to buy SDS for protection.
ReplyDeleteFor those who can be fast and close to the market a lot of money can be made on the downside using the ETF's that rise in down markets. Personally I prefer to keep my powder dry and wait for the buying opportunities on the long side (up markets).
ReplyDeleteUp markets are driven by greed and down markets are driven by fear. Fear is MUCH more powerful than greed and down markets can be fast and furious and often do not last very long. Up markets tend to be much more manageable and slow and calculated.
For readers that can handle the fast moves on the down side good money can be made. Most readers cannot so I would stay away from down markets. Each to their own.