In yesterday's analysis of equity market price behavior, we discussed the phenomenon of the market looking like it wants to establish a trend, then chickens out. Prices start to rise, and then or of nowhere they get walloped. Just when it looks like the bears get the upper hand, the prices quickly rebound and tensions subside. We have been wary of the "no follow through" meme and this has caused us to reduce risk and suggest fewer trades than we have in the past. We think this is the best course of action as the first objective of a good investor and trader is to protect capital and to make money on that capital second.
