<b>Market View for the week of 10.May.2010 to 14.May.2010</b>
Buy Aggressively
Buy Cautiously
<b>Wait</b>
Sell Cautiously
Sell Aggressively
(the highlighted option is my current sentiment)
One of the statistics I like to compute is as follows:
<ul>
<li>I monitor the top 3000 stocks by liquidity( not market cap)
<li>On a daily basis I calculate the number of the stocks from the above set that closed above the 40EMA.
</ul>
Here are the numbers for the past few days:
<b>Fri, 14.May: 36%</b>
<b>Thu, 13.May: 50%</b>
<b>Wed, 12.May: 56%</b>
<b>Tue, 11.May: 39%</b>
<b>Mon, 10.May: 36%</b>
The volatility in the market is definitely increasing. I almost committed to go long by yesterday(Thu)afternoon. The weaker session after lunch helped me decided to stay on the sidelines. We will have more selling to come. These are unusual times, let us not get adventurous. My system did trigger a buy signal on the <b>06.May.2010</b>, I decided to stay out due to the circumstances, but that would have made for a profitable swing trade.
I am always uncomfortable when I am hurrying into a trade. Thus I don't mind losing money which was never really mine.
Have a Great Week-end!
Cheers!