Monday, August 08, 2011

Nothing Goes Down Forever!

Markets are off 3% plus going into the second hour of trading.  For intermediate to long-term investors, I have three trading rules:
  1. Follow the relationship between the 15-week EMA and 40-week EMA.  [That is, if the 15-week EMA > 40-week EMA, market trend is up (Bullish).  If the 15-week EMA < 40-week EMA, market trend is down (Bearish).]
  2. Follow Rule #1.
  3. Don't forget Rule #1 and #2. 
Even though I am very negative (bearish) on our economy going forward, likewise the market, an investor must not let one's emotions take control.  That is why my focus is on the 15/40 EMA strategy. 



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