Market Dips Into Oversold Territory

The market has now pulled back two days in a row and is slightly oversold.

Ideally it will see 2-3 days of additional movement to the downside, especially a cumulative large move. There’s too much “complacent money” trading/investing today and it’s healthier longer-term to flush this money out with a sharp significant decline.

Should this occur, we’ll be there accumulating long exposure as we just started to on yesterdays close.

Making You a Better Trader

To improve, you must continuously learn…

Ernie Chan is one of my favorite researchers and I always enjoy reading his work. I just completed his new book “Algorithmic Trading: Winning Strategies and Their Rationale” and highly recommend it. I immediately came up with strategy ideas which we are now testing and anyone reading this book will be able to do the same.

The above excerpt is from Larry Connors’ Daily Battle Plan A professional-grade trading information service that will help you understand the quantitative metrics behind each day’s market conditions and how they point to selective strategies for high-probability trades.

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