The year was ending on a high note, and then we get a change on the current trend, there has been a good overall return for everyone in the stock market. Today was a bit of a pullback, the bull might be taking a breather here, we can't expect to be on a permanent rally. The market has become overbought when the RSI is higher than 70, we might see a level off or sideways channeling going forward on the trades.
When the market is rising everyone can feel like a genius, now when the market turns from bull to bear, we can start getting that sinking feeling. We might have to go on a defensive move to go the G fund "pronto" and sit on the sidelines for a little bit. The MACD and 10-day moving average will be followed very closely tomorrow morning as we turn the page and put 2019 on the books as one with above-average returns (40%) give or take. A MACD convergence will signal the confirmation on the trend change.
The long term strategy is about minimizing the risk and avoid losing the big picture, stay tuned a trade alert might be on the near horizon.
Just in case tomorrow we don't get a signal confirmation...have a happy New Year and good returns to all!
