Well, once again, as can be seen by the downward sloping blue arrows, the market pulls back after making nice gains..like clockwork.
And to be quite honest, you can see it coming toward the middle of the up moves as unless there's a really good fundamental reason(News, Earnings) for a rally, there's not a buyer to be found.
Well, I guess the positive aspect of this chart, at least for the bulls, is that the market still manages to grind higher..
The bottom chart is important to us as it shows the importance of correlating stock location in relation to index direction.
As you can see, CNDO(Blue line chart) was showing strength as the Dow(usual candle chart) was coming off Monday afternoon.
Also, on the other side of that coin, as the market started to turn south(shaded circle) CNDO continued to go higher for a few bars.
It is because of our real time awareness of market movement, even though we had an interest in CNDO this morning, we were able to avoid it's .40 drop in price due to our ability to see the impending shift in the Dow's direction.
Additionally, as the market ended up weak, this specific example might turn out to be much more painful than the present .40 swing.
And that's just one of the key differentiators with our methodology.
Oh, we'll surely be keeping an eye out for CNDO tomorrow and should all signals line up, we'll be able to enter from a fresh perspective instead of "averaging down".
Feel free to reach out to us should you have any questions about this key aspect of trading.