Stash that Flash in the Trash

The traders are focussing on the just released PORLA report on CPO stocks and production. Just hogwash do what Ed Sykota says "Stash that flash (news) in the trash"

Basic strategy

 

(a) In a major downtrend: sell on minor trend rallies into overhead resistance or against a strong down trendline, or on a
45% to 55% rally (or the third to fifth day of the rally) from the recent reaction bottom.

(b) In a major uptrend,: buy on minor trend reactions into support or against a strong up trendline, or On a 45% to 55% reaction (or the third to fifth day of the reaction) from the recent rally high. In this regard, it is imperative to note that, if you misread or choose to ignore the trend of the market, and are buying against an entrenched bear market or selling against an

entrenched bull market, you are likely to spill lots of red ink, and feel pretty silly, as well.

3. Your with-the-trend position could result in a big favourable move, so you should try to remain aboard for the ride. By premising that every with-the-trend position could result in the big move, you will be encouraged to resist the many temptations to trade for the minor swings, or to scalp against-the-trend trades.

4. Once the position is going your way and the favourable trend has been confirmed by your technical analysis, you can add to the position (pyramid) under specific conditions, as noted in Chapters 11I and 15.

5. Maintain your position until you are stopped out, and your trend analysis indicates that the trend has reversed. At that point, if you have been attentive to the market, you should be positioned for the newly formed trend.