Stock Market Follow Through or Failed Rally
Had this question last night….Stock Market Follow Through or Failed Rally? My usual response…my crystal ball is not working…I just have to follow my rules. I do not like that the indexes are below both the 50 and 200 day exponential moving averages. More so, we chalked up another distribution day.
On the positive side, some leading stocks are breaking out such as #UVE #EPAM #FLTX. More so this is now a despised rally without a lot of negative sentiment. Markets usually go down with optimism not pessimism.
So how does one play this stock market….One word…cautiously…No one knows the future…Look to scale into leading stocks with various buy levels. Only add when and if the stock is working. Place a hard stop 7-8% below your entry…Look to take profits within 40 days @ 20-25% depending on your own rules….
Forget about your opinions…follow your rules…