Strategies for Short Term Traders: “Fear Has Begun to Move into the Market”
For the first day in this pullback, fear has begun to move into the marketplace.
The markets are obviously oversold after 5 consecutive losing days accompanied by 5 1/2 weeks of weekly declines. The recent pullback has been very orderly and for the many of us who trade the equities, the fills remain few and far between. The higher cash levels are a sign that at least intraday there has been very little panic, but that may begin to change today with the futures showing an opening of 1/2% lower at 7 am ET.
As I mentioned last week, fear precedes rallies. Once this fear is in place, a healthy rally will likely ensue.
The above is from Larry Connors’ Daily Battle Plan. To learn more about the Daily Battle Plan – including access to Larry’s daily ETF trading signals, click here for more information.
Larry Connors is founder and CEO of TradingMarkets.com.