In Defensive Mode
The market wasted no time producing downside follow-through to yesterday's poor action -- not even a bounce attempt so far, which is a change in market character. Up until today, any weakness has been immediately recovered. It is still early and we'll see if the bulls can regroup, but this action is triggering stops and emboldening the bears. The likelihood that a bounce will be sold is growing.
When the market turns like this it can be quite surprising how fast you can give back hard-won gains. Over the years, I've found that the pattern in my accounts is for gains to accumulate slowly, and then I'll suffer a quick spike down in which I give back a chunk. The key is to make sure I move quickly to stop the bleeding, which is why it is so important to honor stops....102 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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