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Traders Must Be Traders
The pattern off the high has corrective form and the summer trading vacuum is causing bears to cover at channel support. There is very little reason to be short now, with upside momentum increasing and MA resistance being pushed aside on several timeframes. This thing could well morph but our job as traders is not to predict but to take low risk positions that allow us to test certain scenarios. There is no place for a short term trader to be short here in my humble opinion. Looking for long entries now on the lower timeframes is the name of the game. I am prepared to change my view as a sudden change of character cannot be ruled out, but everything I look at points to underlying strength as I see failed breakdowns left, right and centre across several markets.
Up trend? check
Showing strength out of support? check
Trying to suffocate bearish beliefs that the market “should” do this or that? check
I plan to scale out of longs as and if price moves higher, always being prepared to stop and reverse should the picture being painted change my outlook.
2012-08-20 21:56:46
Source: http://marketletters.blogspot.com/2012/08/traders-must-be-traders.html
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