Market Update

The markets made a run at resistance. But the door was too strong. The resistance held. Overnight tonight the Bank of Japan will release their statement (similar to our FOMC). The world is going to watch and see what they do and what they say. If they raise their interest rates then expect our market to fall hard tomorrow. This is just one more reason for not taking on new long positions today (this was in the weekly newsletter issued last Sunday). Too much risk associated with trying to go long when significant financial news is pending overnight.

We are going to pullback soon. Nothing goes straight up, regardless of what you think or how emotional you get when you see green on your screen don't get caught up in the excitement. That is how you lose the money. Over time you will see how this pays off by being disciplined and in control. No need to jump on something just because it is moving, a cliff could be right around the corner.