There is no quit in this market as we see the market start the week with gains. Friday’s volume was huge due to options expiry as today’s volume was well off Friday’s level. All the major market averages continue to hold their 10 day moving averages. On the flip side, we remain overbought for now. Until we see weakness there is no sense to call for a market top or bail on our position prior to receiving an exit signal. We’ll take our profits as they come, but to simply bail on long positions at the mere possibility of a top we will likely miss out on some serious gains. Stick with the process and continue to grind out gains with Big Wave Trading.
As we wind down the year we will not change what we are going to do. You will hear “tax loss selling” and other market sayings. While we are, sure there is tax loss selling, it will not disrupt what we will do with our process. We focus in on price and continue to focus in on our money management rules. It is our laser focus on our process that has kept us around since 2007. While we adapt to the market our strict money management rules is our bread and butter. Cutting losses is a big factor with our money management rules. Without it, we would have folded a long time ago.
A good start to the week. We’ll need to continue to consolidate these gains and eventually continue to push higher. There is no telling what tomorrow will bring, but we will be prepared with what the market has given us so far. Cut those losses early and ride your winners. Easy to say, tough to follow. Have a great week!
