Thursday, 18 February 2016
NASDAQ: Nothing is sure except the swing.
Bouncing off my red curve, (as I predicted), NASDAQ swings downward.
Since a change in trend-direction may be imminent, we are uncertain how far the downswing will go. It may not reach the green curve, but, then again, it might crash right through it. If it does, it has a long way to go. If it does not, we see that a bottom is forming to the downtrend.
Nothing is sure except one thing:
That stocks and shares will always swing.
Whether the trend is up or down,
The swing is always to be found.
Swinging high and swinging low,
Who can tell how far 'twill go?
Guided by what has gone before,
We guess old patterns will repeat once more.
Sometimes we're right; sometimes wrong:
One principle will guide us all along -
To limit the amount we risk,
So that profitable trades are larger hits.
We limit the risk by one device:
Quit quickly when we've not guessed right.
But hold on when it goes our way,
So that the trade will truly pay.
Watching out so we will surely spy
When the darn punt has gone awry.