- July 29, 2012
- Posted by: Ramki Ramakrishnan
- Category: S&P500
When one is dealing with a complex correction, it is best to let others do the trading while you sit back and watch. This is what I have done with the S&P 500. I made my views clear. I pointed out this was a complex correction. A lot of people are trying to figure out tops and bottoms. It is a futile exercise. There are just too many possibilities.
The best way to deal with it is to wait for a clear impulse move in one direction and then trade on the retracement. There are other clues, and these are explained in my upcoming book. (Some of you with long memories will remember I posted a teaser chart that is appearing in the book. That called for a retest of the highs. How I came up with that back in mid-June is explained in the book too). But seriously, you should avoid trading a complex correction if you can. At worst, you would have missed an opportunity. On the other hand, you could have saved yourself needless tension and perhaps even some hard-earned cash!