The View; 1 Day Does Not Make A Trend, But A Trend Starts With One Day
- Posted by Frank Zorrilla
- on February 21st, 2013
The market finally pulled back and reminded many that the market goes up and down not up or down. It was a severe one underneath the surface, we got a distribution day across the board and IBD changed its market outlook to uptrend under pressure. How severe you might be asking; well for one the $TRIN closed at 2.98, stocks down 4% or more for the day reached 350, and gains that took weeks, months to make dissipated in hours, that is the nature of a market that creeps up. You can also tell by the amount of ETF’S that are trading below their lower bollinger band.
If you look at the View you will notice that most of the offensive indices/etf’s are now below their 10 day and 20 day moving averages, for me as swing trader that is a yellow flag. Because of my time-frame anytime the Nasdaq is below the 20 day I tend to slow down a little. So again 1 day does not make a trend, but a trend starts with one day. Stay vigilant but allow the market to do what it is suppose to do; GO UP AND DOWN, and more importantly know your time-frame.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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Frank Zorrilla is the founder and chief investment officer of Zor Capital LLC.He began his Wall Street career 10 days after his 20th birthday when he became a Series 7 licensed stock broker. More »
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