Mark,
I am in total agreement with you on a strategic basis. It is my feeling that you have the situation totally in hand. As there is a top and bottom situation here we might expect lots of chop at the top and at the bottom. My general theory is that if there have been 3 historic tops in the trend, then I would expect 3 to 5 tops in the trendmaking topping formation. Five would be an extreme and expect 2 to 3. Markets of extreme length and duration do not die suddenly, but do give very good signals. I am looking at weekly and monthly charts for direction. Certainly, you are right in your predictions, just be sure you look closely at the longer term charts.
If I am a day trader and deal in 2, 5, 10, 15, 30 minute charts, I may loose my greater perspective. I might be very seccessful in those endeavors and make lots of money, but if there is a great move and I have no idea what the greater perspective is, then the results might be disasterous for me. I think that these time frames are very well connected, and if one looks at all time frames, then he has a very good perspective!!
Just, Jack!! |
