About this episode
(11/16/21) How do we trade this off-the-charts bull market? Trading is a function of understanding the direction of prices and trends over time. The tools we use include the 20- and 50-DMA, which provide sequential snapshots of market activity over the past 20- and 50-days. Bollinger Bands provide a measure of deviation away from these averages. Our advice here is to keep it simple. The goal is to maximize gains when markets rise, and limit losses when they wane. Currently, markets are extended above their moving averages, which suggests increasing risk of correction over the next few weeks; in order for an average to exist, both high- and low-points must occur. Options expirations and mutual fund distributions are both events that could impact market direction by putting pressure on prices over the next few weeks, and a correction back to the 50-DMA would not be all that surprising. An RSI or Williams Percent Indicator can provide signals for over-bought and over-sold market conditions. We know valuations are extremely elevated at this point, and we're participating in the market as it rises--but we're using these tools to help determine when it might be best to take a little money off the table. - Hosted by RIA Advisors Chief Investment Strategist, Lance Roberts -------- Get more info & commentary: https://realinvestmentadvice.com/news... -------- Watch the video version of this report by subscribing to our YouTube channel: https://www.youtube.com/watch?v=nZI83loprKg&list=PLVT8LcWPeAujOhIFDH3jRhuLDpscQaq16&index=2 -------- Register for our next Lunch & Learn: https://us06web.zoom.us/webinar/register/9616369301708/WN_X_zZBPQCQX2VnVXJlvUE5g -------- Visit our Site: www.realinvestmentadvice.com Contact Us: 1-855-RIA-PLAN -------- Subscribe to RIA Pro: https://riapro.net/home -------- Connect with us on social: https://twitter.com/RealInvAdvice https://twitter.com/LanceRoberts https://www.facebook.com/RealInvestme... https://www.linkedin.com/in/realinves... #BullMarket #Trading #Investing #50_DMA #20_DMA #BollingerBand #Markets #Money