The fiscal cliff is going to play games with the market until it's resolved. I'm guessing Friday was the first of many days that was affected based on events solely related to the fiscal cliff. There's not much we can do until it's resolved.
These events have led me to alter the MTT trading method. I was going long and short based solely on the MTT readings. After reviewing the past few trades and also trades from the past year I've come to realize it's tough trading against the long term trend.
What I mean by that is if the market is in a nice uptrend but the short term outlook is down then it's better to wait out the short term downside and look for a buy signal.
Friday was a good example of this. Long term we are still in an uptrend (for now). Even though the MTT turned down on Friday I didn't go short. Instead I sitting in cash waiting for a MTT buy signal or for the long term outlook to go short.
No comments:
Post a Comment