Trends Persist far longer than one can imagine. And lots of times – people give up thinking it’s over without realizing it’s not over till it’s over.
Focus on what the market is doing
Here’s S&P500 action in 2018: Tremendous volatility and fear as the market tested 200 dma
Source: Chartalert.com
As you can clearly see S&P500 did everything in its power to hold 200 dma. Such Opportunity becomes testing times for Bulls. Nobody knows for sure the outcome. This kind of market action only makes lot of people anxious and worried. But for trend watchers – this becomes the BEST BUYING OPPORTUNITY. The rule is simple – Be on the side of the prevailing trend. It’s not over till it’s over
The only recommendation that works: One should hang on as long as S&P500 holds 200 dma or 2550. Have faith in the uptrend till it breaks your faith 🙂
Here’s how the market rewards that faith:
S&P500 is at all time high 🙂