As always, a really good Smart Money Report this week, with lots to think about.
With regard to switching from long to short this week, what about simply putting a stop under the trend line? If the market keeps going up we can raise the stop and get a better exit from long/entry to short - or indeed stay long if the commercials have got it wrong. And we do not risk being left behind waiting for a better entry if the market just keeps falling.
For myself, I have a stop to change me from long to short if the NASDAQ 100 drops below 1194. I'll raise this by 3 points a day until I get taken short, or the commercials switch back.
I think that's a very reasonable strategy. By waiting until the market breaks support levels you are waiting for a downtrend to prove itself. I like it.
I would just add that whether you want to sell on strength or sell on a violation of a trend line, just make sure that as long as the smart money is net short you look to sell somewhere.
Larry
Current Topic - COT reversals and entrance/exit strategies