TRADING CONDITIONS

Last week was a very difficult week to trade, since we had so many news events and holidays that caused the market to slow down. These slow downs in trading, volume and momentum, cause stock movements to be very choppy and unpredictable. Nevertheless, our short positions have participated in the small down trend so far, which brought some nice profits.

PIXR gapped our way, which was a pleasant surprise. Make sure you lock in profits when a stock does that. You do not want to be caught in the bounce back.

We can expect this week to be very slow. Monday is a US holiday and most people will be either hung over on Tuesday or will be taking the day off. Make sure you are aware of the lack of action expected on Tuesday. For the rest of the week, if we break the 1489 level, this down trend that we have been enjoying will actually accelerate. That means that you should re-join positions and open new ones, in order to maximize the down trend.

If we don't break the 1489 this week, this down trend will die off and you should close off all your short positions.

Hope you had a great holiday!

MARKET 'EXCITOMETER'

Use this new 'Excitometer' to determine your trading aggressiveness. The higher up the number, the more excited we are about trading the market here.