This is a blog for trend following and momentum traders and investors who are trying to keep their investing simple. I am going to give you my opinion on what direction the momentum of the market and selected ETFs and stocks are moving. I use some momentum tracking technical indicators but I am not going to talk about a lot of technical analysis mumbo jumbo of bottom, tops, support and resistance and all of that.
I also believe that the market does not reveal its truths until way after the fact when it useless to use that information. Therefore I am not going to get into a lot of talk about whether interest rates are better going up or down, or what is happening in China, or earnings for a particular stock. In other words, find the trend, follow it and don’t ask why.
I will from time to time talk about “background noise”. Despite what I just said in the previous paragraph, it is important to keep an ear to the macro noise in the world - you need to know if its a train coming at you or the dinner bell.
When I discuss the market and particular ETFs and stocks, I will refer to their current momentum which is a short term directional assessment, usually these move last from a few to several days or more. I will also talk about the TradeWinds or momentum support. This is based on a longer term view of momentum and helps gauge whether the short term move is a good one or not using the analogy of whether the wind is at your back or in your face.
No comments:
Post a Comment