Hi Everyone
All the major averages have broken their rising trendlines on big volume so it’s bear flags all the way from now.
I think we’re headed for a MAJOR correction that will give us several opportunities to get in with shorts, sell bets or put options for months to come.
Remember, the market doesn’t just head in one direction in a straight line. It will retrace along the way. That’s why our method of trading flags and breakouts is so important and for the main part so safe. It means we rarely have to suffer major drawdowns.
Could there be more in the way of steep retracements as the markets trend down? Sure, that’s a possibility, which is why you need to review my webinar from 23 November where I talk about adjusting that first profit target from 50% of the 1:1 to around 38.2% (or less) of the 1:1. Click here for that webinar:
I’ll also be posting a new video in the next week or so (when my new microphone arrives!).
One final comment for this email. If you’re uncomfortable going short you can always try the Ultra Short ETFs which are the inverse of the markets. So as the markets are going down they’ll be going up. Examples are SPXU and SDS.
If you want to learn more about trading with the OVI and combining it with flags, breakouts and even reversal signals. take a look at my new monthly program. Our next webinar meeting is on Thursday this week. Click here for more details: http://ptc.flagtrader.com
All the best