daytrade diaries... october 30, page-5

Last night saw a very strong Dow & Advances far out numbered Declines. But before we get carried away, just remember 8 of the last 11 sessions have been down across the broader market on the NYSE. My Advance Decline Line Breadth was broken by the 30 Day Moving Average a few days ago & although it was a very strong night in the US market, this indicator has not seen a cross over yet.
Whilst we may all be very happy with the results over night in the US, I still believe extreme caution should be exercised until we have proof from our indicators this correction is over & not just a one night bounce. Today's bounce may represent an opportunity for those traders/investors who weren't prepared for a pull back in the market to ensure their houses are in order.
In the meantime I will wait with large cash reserves for indicators to confirm we have worked our way through this pull back. Whilst it may take one or two good trading sessions out of the US, still happy to wait for indicators confirmation.
Regards
Buffett
PS No investment advice given, please do your own research