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- What is the Market Doing? ... and This Weeks Stocktwits 50
What is the Market Doing? ... and This Weeks Stocktwits 50
Howard Lindzon
January 23, 2011
I have been reading Carl Swenlin a long time. He keeps it simple and real over at Stockcharts.com. This week Carl nailed it on trend following:
Rather than explaining why the market is wrong, we should be asking, “What is the market doing?”, and acting appropriately. I am, of course, talking about a trend-following discipline. This approach is never perfect, but it is always rational because we respond to what prices are actually doing, not what we think they ought to be doing.
We are in a massive uptrend right now and you need to have a plan both for following the trend and bailling when the trend ends.
This week’s Stocktwits 50 is a good place to start hunting for ideas and new leaders. It was a brutal week for momentum. I felt it in my portfolio. Rackspace $rax and $goog lit me up the last few days. In Google I gave back most of my gains.
The market was throwing some punches in momo land. I took a jab to the forehead and I am on guard.
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