Summer time

Hi there,

I have been pretty busy lately so I wrote a long time ago here, sorry for that. Actually, I have worked a lot on and with my Profit Trader Team. I invented and we developed and tested a new trading tool for Forex intraday section; most likely you will hear about that later. Besides that, of course I kept trading. As I keep saying that obviously we are in the 'summer time of stock market' which makes it easy. This period always brings us easy entries and confident decisions - mostly in direction of North, as bulls run away.

When the market is going up.

You don't have to be a genius to recognize the phases of Dow Theory on the charts. We had accumulation phase before, then public participation phase which is ending nowadays. The correction of this phase has arrived bringing new opportunities to find a right entry point under favourable conditions (buy the dip). After that if we see a break out again that's gonna be the 3rd phase, the excess phase.

These things put some idea in my mind to share with you:

1.) it was an 'easy' period to make good money on markets - we've just had a fortune to catch it, don't think that it's always gonna happen from now
2.) don't pretend to be wise when you were lucky, get prepared for next session
3.) summer time is always followed by winter time, be ready for changing when it comes

Sell in May and go away!

I guess you've already heard this saying: Sell in May and go away!
I do not wanna say that you or even I have to sell out all our portfolios but there is a truth behind this sentence. Getting deeper in summer time more and more serious trader and investor decide to sell their interests out and go to their holiday. These sells put a huge bearish pressure on the market causing sharp falling prices. I understand that most likely its not your instrument but the correlation will affect you and your investments.

My thoughts are the following now: probably we are going to experience a good several week more uptrend (as an excess phase) but right after that I expect a sharp falling period. I just wanna ask you not to expect a long long bullish trend and invest for years - it is definitely not that time. Enjoy riding with uptrend but watch out for the signals of changing and take action when it comes.

Anyway, show must go on.