Cautious pilots

Coming off the lows in a market is often a very tricky time.

• Is this the low?

• Will there be a second leg down?

• Will markets move into consolidation now?

Now we have broken through the pivot levels we want to start testing opportunities early.

While you should be cautious, you can add new positions by using pilot positions to test the trade.

Some will fail - and some will go on and do well.

Those that fail we can axe and to those that do well we can add.

If you are mostly in cash you should be looking to put a significant proportion of your capital to work - but not all at once and not all now!

Start with small positions and plan to add over the next few weeks/months (to full-sized positions) if the trend develops.

As we personally have a portfolio we are happy with, we are not in too much of a hurry to buy from here but, if this week ends well, we will have more of a reason to scout around post-NFP.

Keep your watchlist fresh and look for new trade ideas.

Let's go trade!