Not since November has the market closed out the month in positive territory. The light volume jaunt higher was finally met with heavy volume selling to close the month of February. Today was not the way you would want to start the week nor end the month. We remain in a precarious position as we have been dealing with a very weak market. There is a lack of leadership and we continue to see weak price action across the board. There is still a chance this uptrend survives and continues to march forward. However, we continue to have a lack of proper signals and new leadership emerging. We will continue to focus on our risk management process and execute our strategy.
This does appear to be a bounce from the heavy volume selling we saw during the first part of the year. We saw the start of the selling in December and it has continued through the first part of February. During the entire sell-off we never saw any capitulation from the market. Bears certainly saw higher levels, but really it was a lack of bulls hitting the extremes. Normally, we’d see bears hit an extreme. Not this time and nor did we see heavy volume selling plunging to new lows. We have an unorthodox market to say the least. Odds favor this current rally to be simply a small bounce in a bear market. We can make a few more guesses, but the bottom line is only price matters.
Will March live up to “In like a Lion out like a Lamb” this time around? March is historically a decent moth for the market, but given the current conditions the likelihood of this being the case is now a bit less. If we are able to consolidate these gains off the lows there is still a chance we see prices continue to move higher. Patience and continued execution of our risk management process will lead us to making gains.
Stick with Big Wave Trading through this market. No matter if we go up or back down we will come out on top. Our time tested process will shine through. Get on-board.
