Navigator Swing Strategy – 20% Long
Price closed above the 5-EMA and triangle on a short squeeze into the close as anticipated. The best observation is that we likely have a short-term low in place. I would emphasize that it is “A” low but not likely “THE” low.
The market ran out of runway today so we landed on the 200-day line but did not conquer it. I also remind myself that short-covering is not buying.
I need to see follow-through buying by institutions to become a true believer. Even with that, the market may only recover half of the corrective decline before rolling over again.
There are many differences between this corrective decline and the garden variety pullback. We are likely to visit these levels again, though it may be on a longer cycle trough out in front of us.
As I always say, let the evidence take us where the market wants to go. Strong opinions have a way of coming back to haunt us.
A.F. Thornton