7.6 Pre-market

Let me talk about it. Although I checked out the robots/robotics sector on Friday, based on the key takeaways from major bloggers, I’m still going to be conservative. The “climax” won’t be giving you the core Sanhua names that hit the limit-up boards—they’ll just run a bunch of heavily oversold stocks. If there’s good news over the weekend, you’re more likely to get your head taken off (by a sharp reversal). So in this position—do you understand what a chaotic (confused) period is?

Either keep a small position, or stay fully in cash. During the pullback, you might get cut—then you won’t move. In a chaotic period, prices rise in the morning, and by the afternoon they bury you. If you really want to trade, wait for a two-day drop, then lay in positions for a rebound.

Most experienced traders don’t want to act. If you’re constantly fully invested, think about when you end up losing the most. Maybe if Monday doesn’t bring good follow-through, I’ll go completely into cash and wait for an opportunity. Don’t chase the rally every day.