It all depends on your time frame. I donâ€™t see any reason to buy and hold this market right now. We are in a down trend and I donâ€™t see any reason to believe we have seen a long term bottom. There are opportunities to make money on the long side during down trends, but overall, I will be net short until the trend changes.This is just another proof that I am clueless about the market.... edge, I have no clue what 200dms, 50dma, and 20dma mean. I google it and found out the meaning... 200-Day moving-average, but still it has no real 'meaning' for me.
For what I get from you guys here, you seem to think we are still going down so shorting is still in order?
When I see a declining 200 day moving average, it tells me that there have been more sellers than buyers over the last 200 days. In limited investment accounts such as my 401(k), I went to cash when the 50 day crossed below the 200 day. That picture told me that the 50 day trend was changing the direction of the 200 day trend and that 200 day trend doesn't turn around over night.
I obviously use shorter time frames with an eye towards the longer time frame on my other investment accounts and structure my position net short with options, but that is a much more active account.