One of the things I look at before entering a trade is how the market behaved on the cyle previous to the one I am considering entering.
If it just bladed up or down, I am aware that the next move may blade in the opposite direction.
Since the markets have generally crawled up for the past 5 years, wouldnt it be reasonable to expect it to crawl down?
Everyone who is expecting a crash may instead see a long slow grind down to some as yet undetermined support.
It would sure be easier if market dropped 10% in one week, if you are short at least.
But who is to say the dow or whatever market wont just lose a percent or two a month for the next year or two?
If it just bladed up or down, I am aware that the next move may blade in the opposite direction.
Since the markets have generally crawled up for the past 5 years, wouldnt it be reasonable to expect it to crawl down?
Everyone who is expecting a crash may instead see a long slow grind down to some as yet undetermined support.
It would sure be easier if market dropped 10% in one week, if you are short at least.
But who is to say the dow or whatever market wont just lose a percent or two a month for the next year or two?