Divergence does not matter | stockbee

7/31/2014

Divergence does not matter



The divergence was building since first week of July and was clearly visible on T2108 and Market Monitor. 

It showed increasing number of stocks in downtrend. The indexes were however near high , and it created false sense of bravado in some people.

People started saying divergence don't matter or market can keep going up in spite of divergences or divergences are good. If you believed that and were loaded up on stock , you would have some pain today.

Objective of trading for me is to make money and keep it and then add to it. Riding roller coaster of making money and giving up in correction is not my idea of fun.

If you want to make money and keep it develop tools that will proactively warn you of coming trouble.

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