Today was an excruciatingly down day in the US stock markets, and me with a new BackTesting Report package on moving average buy signals.   The package is a great deal and chock-full of useful information, yet I felt like I had to ask myself whether this was the right time to bring it to market.

But when I reflect on the situation, I quickly realize that I expect to see buy signals of one form or another from my market scans before I see more sell signals.   Here’s why:

• Long trades with stops have already been stopped out.
• Long trades without stops (very long-term holdings) are too weak to sell now.
• Short trades are already initiated.
• The market has been falling for 3 weeks, making new short signals unlikely.

In summary, I’m not expecting any fresh sell signals.   However, when the market stablizes I’ll be on the look-out for two types of buy signals:

• Cover shorts
• Initiate new long trades

That and I take the lesson from the great ones such as Warren Buffet, Jesse Livermore, Baron Rothschild, and the rest who indicate that success comes from buying when others are selling, being greedy when the masses are fearful.   Tempered with patience to avoid falling knives!

So even though its a rare stock that has any sort of a moving average buy signal today, its not such a bad day to be thinking about strategies for the next buying opportunity.    Maybe its a good day to read reports about buy signals after all.  

Definitely as good a day as any to ask yourself if you have an objective way to figure out what to do in the market without getting carried away by the emotions of the crowd.

Tags: entry backtesting