The US indices today will be hanging on Bernanke’s every word. From a trading perspective here is what WE KNOW:
- The definitive trend in the US Indices is higher.
- There has been no, none, not even a teeny weeny signal a top could be in place.
- Therefore, the surprises are likely to be to the upside
We also know trading and investing is about probabilities, and more specifically POSITIVEEXPECTANCY. positive expectancy involves, along with a lot of other things, eliminating as much RANDOMNESS as possible. This is why we constantly preach and emphasize to default to Market Development and Market Structure.
Trading today, especially early, is not trading it is GAMBLING! This is probably true no matter what you are trading, except maybe grains.
Be a PRO; trade only when the odds (as defined by Market Structure and Market Development) are on your side. Yes, the markets could drop 5% today out of the blue, but they could rally 5% out of the blue, too. That’s a 50-50 proposition It’s a bad BET. Sit back and enjoy the show. We are going to have WONDERFUL opportunities this summer! make sure you and your account are around for them!