Tough Markets Don’t Last, But Tough Traders Do
One of virtues of being a halfway decent trader is that you can look at a day
like today and not have to get too bent out of shape. For sure, it can be exhausting.
But also it’s going to be exhilarating if you are able to simply follow as the
market leads and not get yourself emotionally locked into any particular point
of view of what’ll happen next.
Today was a good day for the many traders who followed that simple
philosophy.
Now I want to call your attention to Check Point Software
(
CHKP |
Quote |
Chart |
News |
PowerRating).
As you can see above, CHKP, continues to hold above its 50% retracement (1999
lows – 2000 highs). Defying the downdraft on a day like today is an
accomplishment. Also….
Did you catch Doctor
J’s Monday commentary?
His piece is what it’s all about during extreme moves like what we had today.
As much as human nature pulls you into thinking that we’re about to get sucked
into bottomless whirlpool, you must stay aware of any evidence that is shaping
up to the contrary.
According to Doctor J’s indicator, dollar-weight volume, there are many
institutions with a track of being consistently right who are positioning
themselves long in stocks like CHKP, SUNW, VRTS and INTC among others. If
you’ve been reading my column over the past few days, you already know that
(believe or not), the long-term support off a five-year trendline in INTC is
still intact.
Yes–we’re in a downtrend and yes, astute traders go with the trend. But
while the trend is your friend, you don’t want to get married to it.
Till Tuesday,
P.S. I want to thank Doctor J for giving me today’s
headline.