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Tuesday, March 1, 2011

Email Sent To ART OF TRADING Members Yesterday!






When Breakouts Fail It's Time To Be Very Cautious



"Guys,

Please take 5 minutes and look thru the charts i attached for you. You will
quickly see that today *breakouts are failing*. Literally, almost every
single stock on my list started off with a breakout or a gap up and as the
day progressed, one by one the *breakouts failed*, *the gaps filled and also
failed*. Some stocks and some indexes are even starting to create *BEAR
FLAGS (bearish patterns)*. All this is a warning sign that started 2-3 weeks
ago. This market has been slowly giving us clues here and there about
the *under the surface deterioration* and lack of *'good health'* we usually see during
a strong market.

For my money, i am going to 100% cash and gonna stay there until i see
better trading action and more consistently healthy action from stocks.

In a market that sees multiple failed breakouts on a more consistent basis,
being LONG is *NOT* the best strategy. You either need to be in cash,
minimize activity dramatically (which is what i have been doing lately), or
short into strength.

As of now, i will opt to move to 100% cash and stay there until further
notice."






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