Churning

This is why so many of you always miss these larger degree turns. Price often churns for an extended period of time before launching. Impatient traders get frustrated and give up right before the move starts. Then they get left at the station afraid to enter for fear the initial rally is a fake out. Finally when they become convinced it’s for real the market is already overbought. And they can’t buy into overbought conditions. But during the first daily cycle in the advancing phase of a new intermediate cycle, price can stay overbought for long periods of time.

Many of you will be like a deer in headlights as you watch the first daily cycle leave you behind. By the time it becomes just too painful to stay on the sidelines any longer, of course that’s the time all the rest of the deer finally panic into the market as well, and that’s when the first pullback begins knocking you out for a loss.

We lost about 50 deer during this churning process. Three months from now they are going to wish they had listened to me and had a little more patience.