day traders diaries ... tuesday, page-4

morning guys,

as discussed yesterday, it looks like the market has reached a short term top and is looking to take a breather as traders take a bit off the table after such a stellar run. I am looking for the XJO to pullback around 5-8% in coming weeks before resuming an upward trend, hence my move to cash over recent days.

for any half decent trader the last 8 weeks has provided an environment to earn more than enough profits to be able to sit on the sidelines and wait for better entry opportunities.

"capital preservation" will be the catch phrase for traders over the coming weeks, remember not to force trades in a flat/declining market.

there will be short term trading opportunities, but be quick and nimble, book profits and move on.