Calmly Exit

We scaled out of our bullish swing trades Thursday and Friday. Your remaining risk exposure should be very limited.

PRE-OPEN MARKET COMMENTS TUESDAY - Last week we exited two thirds of our bullish swing trades. The pullback yesterday should have made you feel like you did the right thing. Now that your remaining position is smaller, it will be easier to manage. We are not trying to pick tops and bottoms. Our goal is to take a big chunk out of the middle of the move and to do so with size. When we see an opportunity, we start with a small position. When it performs as expected we add. All the while our average cost is much lower than the current price. At worst, we can exit for a scratch if something horrible happens. That knowledge allows us to keep adding to a winning position. Eventually, we will see signs of resistance and we will gradually take profits. Tiny bodied candles on light volume near an all-time high are a sign that the momentum is slowing. Recent gains can be stripped away with ease. We are not going to wait for that to happen, we are going to proactively manage the positions.

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