Courtesy of David at All About Trends
(Reminder: David is available for questions from members in the comment section!)
Hurry Up! Hurry Up and WAIT that is. Besides, what’s the rush.
After all, yesterday we said:
"There isn’t anything from a low risk entry point to consider on the long side. Remember we are all about letting them come to us vs. chasing buses."
Remember CASH is a position. Tell that to the people who went to cash in September of 2007. Sure you got a little more upside and of course they all cussed seeing the markets go higher without them, but in the end? You know when it all came unglued? They laughed all the way to the bank because they got to keep their cash vs. the everything is alright and always will be mutual fund managers who all ended up going down the slope of hope. Besides, again it’s only mid-February.
Speaking of 2007 check out this chart of the OTC comp.
Need you ask why we are stacked in cash and in "What’s The Rush" mode after looking at this chart.
Now this doesn’t meant that we can’t go higher. It means this is major resistance and all the leaders that we’ve been watching are also saying pretty much the same thing but only a little different — different in the sense that they are all extended and offer no low risk entry points to the DISCIPLINED investor/trader with set parameters that they work within like Pullback Off Highs.
That all said — don’t think we are sitting on our laurels as we’ve been scanning and scanning charts all from the "What Do I Need To See To Make Me Take A Trade" on the long side perspective.
While the indexes continue to chew up here we have been seeing under the surface a fair amount of leaders start to either pullback off highs or trade sideways. Still though 3-4 days isn’t really all that much as with basing structures and sales growth "Bigger Is Better" — it’s really what you ultimately want to see.
Over the next few weeks who’s not to say we don’t get a nice HEALTHY pullback (charts sure show it being due) in the coming days/weeks and then make a run back to the scene of the crime.
Should we see something like that? Well then we’ll go along for the ride from a trade perspective vs. from an investor perspective. The chart above pretty much says that to be longer term and an investor here (with regards to adding new positions) that you MAY be late to the party. That’s why we want to be traders here.
