“Market in Confirmed Uptrend!” How do you know? Investor’s Business Daily’s Market Pulse says so!
But, Elliott Wave International claims that we are on the precipice of the really, really, really BIG wave 3 of 3 of 3 DOWN to new lows, even lower than March 2009!
I’m citing these two diametrically opposed opinions as just two examples of the extremes being presented by those who are held in high regard for their opinions.
Personally, I follow IBD. They never try to “predict” the market, just report on what they see in PRICE and VOLUME. And, furthermore, digging into the text of their articles you’ll find many cautionary notes about how many times in history a Follow-Through-Day with such low up-side volume on the days immediately afterwards go on to a successful rally. (Not many.) I believe that trading decisions must be made on current evidence, not on a prediction of future market movement. The economic fundamentals in our world are not healthy. I will not be surprised if the market turns bearish. But, at this point, it is slightly bullish, so I’ll trade what I see, not what I think.
The way we are taught to trade at OptionsAnimal is a great benefit, because we know how to protect ourselves and benefit from any market direction. As they said on a past favorite TV show, “Be Careful Out There!”