So until this market gets healthier and the volatility declines the best thing to do is stay in cash.
Good luck and good trading!
Tuesday, June 22, 2010
Cash is king!
I think that if you are not already long stocks that are working properly then the best thing to do right now is to sit in cash. When I look at the leading stocks very few of them look healthy. There is no clear group of stocks that are outperforming every thing else and can be identified as clear leaders. Many stocks are free falling through pivot levels on heavy volume instead of setting up nice tight handles on low volume. When I look at the past leading stocks that have already topped like RINO and TSTC I am not seeing any of the patterns I like to short. In other words, I am not seeing any obvious high probabilty set ups at this moment. In my opinion, the markets feel like they could plunge 5%+ or 8%+ on any given day!
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