Thursday, August 4, 2011

Quick reminder: "falling knife"

Just a quick blog post about the old saying, "Don't try to catch a falling knife."  Most good trading systems will use this kind of approach -- because you can never tell how far emotions will carry a big market move.

Although our intermediate and long-term stock market indicators are long, our short-term model has us on the sideline (although not before taking some losses -- less than the general market's decline.).

We will continue to follow our trading models -- and depending on how the signals are -- will trade accordingly. Long-term investors may look to add to their positions at some point -- and traders should be cautious due to the high volatility.

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