They say the trend is your friend.  Don’t go against the trend.  Well, the trend remains to the upside.  It doesn’t really matter why the trend is up.  Whether it be a great economy or artificially created by the Fed and Treasury, the trend is up.

Does this mean we throw all caution to the wind.  Certainly not!  Why?  Because we know that the market  internals are not healthy as evidenced by our friend the Hindenburg Omen which remains active until the end of the year.  We know that the rug can be pulled out from underneath us at any moment – especially when market euphoria hits and everyone has been suckered to the long side.

We can be long but on watch.  We can continue to take profits as the market moves higher and continue to adjust stops as appropriate.   So, if the bottom falls out, we will not be caught by surprise.

Check out this weeks analysis of the Dow and Oil markets using the MTPredictor Elliott wave and Fibonacci trading software for stocks, commodities, futures and forex.

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Tags: commodities, daytrading, Dow, elliott wave, elliott wave software, fibonacci, fibonacci trading software, forex, futures, hindenburg omen, mtpredictor, mtpredictor trading software, oil, stocks, trading software

This entry was posted on October 11, 2010 at 7:58 am. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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