Time 1:40

Money Management

Now is the time to work on defining our sell discipline.

1) Mental stop losses set up on all positions depending on entry point but never exceeding 8%.
2) On positions that become profitable we will rely on the original 14% gain as our trigger to begin looking for an exit. Over the years the average of a 14% move off of the buy signals seems to be the right starting point to look for weakness.
3) Watch the 60 min. chart for sell signals and act immediately

The market is currently on a buy signal and I would like to try and hold positions thru volitility as long as the new uptrend is intact. If at the end of a day the market breaks the uptrend on volume then we must take action quickly. The longer term picture of the market is still decidedly negative. This is a rally in a downtrend so the 1st sign of real weakness could lead to real trouble. Go to cash by the end of the day and we can always buy back positions if the market holds. We want to error on the side of protecting principal.