A sharp rally in the S&P500 is beginning to slow. What is the outlook for the U.S. markets?
Have a look and understand the big trends. (Video opens in new window)
A quick update on the S&P
What follows is the main post. This is a bit complicated.
First, I suggest that the trader should always have an open mind - there should be no perconceived ideas about being bullish or bearish.
Second, I strongly urge traders to trade with a view, a sense of dirction.
Are these suggestions contradictory?
No. The trader should have an open mind on the direction of the market. Determine the trend using your trend detection methods. Then, trade in the direction of the trend as you perceive it.
An open mind means : I can imagine the Nifty falling back to 3500 again. Why not? It also means that the Index could rally to 7000! After all, there is no law saying that the Nifty cannot go into a bubble. So, anything can happen. When we have an open mind, the real message of the charts comes to us.
But we cannot trade with these flights of imagination. With an open mind, we are mentally preparing ourselves to listen to whatever the charts say. Trading is done on trend & setups available on our charts.An open mind ensure that we do not go into denial.