- A major low in McClellan Index is followed by a massive BULL run
- Once the BULL run starts and after initial thrust, market often flushes weak hands and sets a panic before the next MAJOR leg up which we don't wanna miss
- McClellan Index provides a key piece of information here as it stays very close to EMA(59) which can result in the best possible entry into next major rally
Current scenario -
- We have a major low in McClellan Index earlier this year
- McClellan Index has pulled back to EMA(59) as expected
- Market has breached MA(100) and MA(200) causing panic and flushing weak hands
What should we do?
- Wait for safe bet - Wait for market to get above MA(100) to enter and McClellan Index to get above EMA(59) if you want to play is safe but then you lose some gains, not to worry, as much more gains are ahead of us.
- Take a risky bet - Enter the position now, however its risky best as market can simply decide to drop further in which case your stop loss would be triggered incurring some losses
Get ready and have patience...