I have been watching for the last few months to gauge the direction of the general market and it seems like the market wants to break lower. However, we are only in the middle of the bear market and we have a long way to go. During this period usually there is some activity from fund managers seeking long term value. However "smart money" starts to leave the markets and investors start to suffer losses in their portfolios refusing to believe that there is a paradigm shift taking place. Don’t be fooled about the minor rallies, they are there to help lose your pants in the market. Any move to the upside will cause heavy selling, crushing the hopes and dreams of the minor. No matter how much you want the market to go in a certain direction, there is nothing you can do to force that to happen. Worst thing about a bear market is the fact that no one wants to accept her faith, understand her reasons and learn from her mistakes. History provides an insight into the markets which ignores the noise and confusion along the way. History will show you that nothing has changed over the hundreds of years because humans have not changed. Try and understand her, what she has done in the past in order to understand what she plans to do next. We could be in for a rude reality check. Over the long run, market conditions change. The system that works in the past may not be relevant in the new market condition. The key to trading is not to fight the trend. If the market is trending down, look for opportunity to short and do not long it. You should never have the mentality of conquering the market. . This experience will help in assessing when to trade and when not to trade in the future. Not to fight is not cowardice, “live to fight another day”.
Take care and all the best!