This is an excerpt from January 12th newsletter post:
If the market recovers some potential set-ups are as follows:
After a day like today, one would be wise to play conservative. This is truly a market like no other and so some of the time-tested rules that we have made our bread and butter by in years past simply do not apply. What we don’t want to do, however, is to be stupid and ignore what we see with our own eyes. Have we seen stocks in the past year fall 10% on monster volume only to reverse the next day and continue on their way higher? You bet. Does this mean we throw our hard-earned discipline to the wind and let the chips fall where they may? Not on your life. We aren’t gamblers, we’re traders. We play the odds that have been formulated over a century of market history and stick to our methodology. While we may “tweak” it now and again depending on the character of the market, there are some rules that will never be broken. One of those is cutting losses short.
Disclosure: No positions