DPR Action: Exit at market open, more selling likely on the way
It’s never a laughing matter when you are in a nice trend and then the market suddenly sell off and eats into your profit. Especially as the trade was up over 10% cash on cash since early July, but that’s just the nature of trend trading. In order to get the really big trends we have to sometimes settle for smaller gains and small losses.
I think at this stage it is inconceivable that it will turn into a loss at the open, therefore, I will celebrate this gain, even if its not as much as I wanted it to be.
So, despite the doom and gloom that comes with a swift sell off, I can’t help but giggle at the picture in today’s blog. I found it online a while back and had to share.
This particular signal is an index exit. This technical exit, although not always, usually has a follow through and signals the beginning of a sizeable pullback.
I don’t have a crystal ball, so I cannot say for sure, but I don’t think this is going to be a large pullback. As in my humble estimation, the bull is still alive and well and we will see prices above 2500 before the autumn in the S&P 500. Therefore, the ideal scenario is a gap up exit, followed by heavy selling into next week and a sizeable correction so dot2dot can fish for a bottom.
For now an exit signal is an exit signal, so I will be flat come morning. What happens next in the rhetoric between the white house and North Korea is anyone’s guess. It has certainly been a large part of the market jitters over the last couple of days. I only hope like everyone else that a peaceful solution can be found and it doesn’t get out of hand.
Have a great evening,