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Strategies & Market Trends : E-Mini Pit -- Ignore unavailable to you. Want to Upgrade?

To: J. P. who wrote (3105)	5/6/2002 1:23:28 PM
From: bernard rogers	Respond to of 11288

Yes, I believe the NQ has just set up the longs for a drop to the day's lows

To: J. P. who wrote (3105)	5/6/2002 9:18:07 PM
From: the-phoenix	Read Replies (1) \| Respond to of 11288

JP - >>The trend is still down. Guilty until proven innocent. << Yup, and trend-followers will be right until they are wrong, whereas bottom-pickers get to be wrong almost every day! But I have been tracking the performance of a fairly decent daily trend-following system on the NDX since the beginning of March and have been surprised and disappointed to find that it has made no money during this time period. The NDX is down over 400 points during this period and this system is actually under water. Why? Strict entry criteria and tight stops, designed to keep the system from losing during sideways markets, have resulted in late entries and stop outs during this downtrend. A more generous system might have captured some profits during this downtrend, but would likely lose badly in a sideways consolidation period. There is no one size fits all, and anyone who persists in shorting in the weeks ahead, believing that the trend is still down, may have another October 2001 experience, which more than one trader I know can tell you put a major dent in their accounts.