The most important question at hand is the matter of the October rally. Was it a “counter trend bounce” in a new declining primary trend? Or is it a “continuation” of the previous advancing primary trend?
In a Trend Following management strategy, this is the most critical piece of information. There are many fundamental opinions on this subject, but we at Sherwood Forest focus only on price analysis.
When we look at “current” price evidence, we are doing so to determine how our client accounts should be positioned at the present time. When the price evidence changes, we will adjust our positions at that time. This is not a forecasting method. All of our research is dedicated to the “here and now”, not crystal ball speculation that can lead to disaster if one is wrong. Combing this view of market analysis with a non-directional bias allows us to potentially profit in both up and down markets, while keeping our drawdown to a manageable level in non-trending markets. We believe this approach is key to recognizing and taking advantage of what appears to be a breakout of the recent consolidation phase the markets have experienced.
In this report, we examine the potential direction of that breakout.
(Click Here to Download Report)
This entry was posted in Market Commentary. Bookmark the permalink.
Review of the Failed Breakout
The most important question at hand is the matter of the October rally. Was it a “counter trend bounce” in a new declining primary trend? Or is it a “continuation” of the previous advancing primary trend?
In a Trend Following management strategy, this is the most critical piece of information. There are many fundamental opinions on this subject, but we at Sherwood Forest focus only on price analysis.
When we look at “current” price evidence, we are doing so to determine how our client accounts should be positioned at the present time. When the price evidence changes, we will adjust our positions at that time. This is not a forecasting method. All of our research is dedicated to the “here and now”, not crystal ball speculation that can lead to disaster if one is wrong. Combing this view of market analysis with a non-directional bias allows us to potentially profit in both up and down markets, while keeping our drawdown to a manageable level in non-trending markets. We believe this approach is key to recognizing and taking advantage of what appears to be a breakout of the recent consolidation phase the markets have experienced.
In this report, we examine the potential direction of that breakout.
(Click Here to Download Report)
Related Posts:
This entry was posted in Market Commentary. Bookmark the permalink.