New Phase, New Cycle?, page-4

@Brabant90

Around Christmas I saw the macro scale charts turning over so I took 50% off the table, then once it confirmed I sold more - I don't short.

The other thing that makes a huge difference as a "trader" is to be able to adjust holdings around between multiple accounts to realise losses against previous profits to reduce actual income (hence reduce tax liabilities) for the year. This makes a huge difference if you're able to judge the charts reasonably accurately. So I can sell long holdings at a loss in one account to buy them in another ... Off-Market-Transfer. (You will notice this happens heaps for most companies in a downturn among T20 holdings.)

Between those two tasks you can sure up cash and in effect, average down without having to short.

But you need to know what you're doing.

Then when you have cash on hand ... watch for divergences near the higher Fibonacci levels of retrace in bear markets ... and consolidations near those lows suggesting the trend could be about to break. (Chart below)

Then ... and this is a big one ... as the bounce confirms ... pile in! Back the truck up ... if you get worried take a few profits on the bounce to reduce your overall exposure and per share cost.

In the chart below ... notice the gap down consolidation, notice the reducing volume, notice the stochastics MIGHT be positive if it bounces higher (and vice versa) so go with the trend and trade the break is my opinion.

4DS has not really dumped with the market lately - been a fair bit of support against the general market volatility so I feel the risk is to the upside with any macro upside break. We'll see next week. Good luck to all longs.