Another Buy the Dip for The Stock Market – Trend Following
So whats new? Another buy the dip day in the stock market? The leading stocks were strong and closed near the top of its trading range. Volume was slightly lower than yesterday but about average and the relative strength line of the index is looking better. Today was a positive session and went a good distance toward improving the picture. All the major averages rallied the entire session and held their gains. The Nasd averages are also very close to new high ground. The SPX closed almost right on its 50dma. The market needs a little more action like today to strengthen the case for a rally resumption, but today’s action helped.
What is completely ironic….WW3 with North Korea could be on the horizon and the stock market does not care. French elections and another shooting…no one cares. Legendary Hedge fund managers one after the next who have seen stock market cycle are shouting FIRE! Again the market does not care!
This is what trend following is….tune out the news…follow what the market is doing. On a personal note I am long the French Stock market. Not that I have any opinion or knowledge. Simply I had a signal and took the trade. My protection is in…but would this be a trade I would want? Nope…it is easy to want to buy gold or bonds. Have a trading plan and simply follow it…