Anticipation on the Sidelines

It is always the most difficult when profits slip away when you are in a trade. It can be more painful to sit on the sidelines knowing there is profit for the taking and not making a move. Staying disciplined is the key to successful trading and the CMI is just the vehicle to keep from overtrading...as hard as it may be to not jump in and chase.

Yesterday's post illustrated the primary signal and the three day rule that prevents trading until confirmation. This rule has been very useful but as you can see, this time it was not since it prevented a QID trade on one of the worst days in recent memory.

Sticking as close as possible to he CMI signals, I may jump in tomorrow if there is a dead cat bounce, otherwise I'll hold and wait for the signal, or possibly wait for the oversold market to dissipate I believe we have a long way down so losing a little here might just be setting up for something much bigger.

Wednesday morning should signal a QID buy but I'll wait and get a feel for the market before making any decisions. Following the CMI exactly takes the guess work out of it, but the trader in me is looking at the oversold stochastics versus the huge downtrend that I want to be a part of.