Below is the breakout I tried to play long this morning. It was (what I call...) hard work. That is the feeling that it's just not launching like it was "supposed to". It was a hard climb. It didn't make it to my target. And later I see it failed.
This is what I want to remember about trading in bear markets: the pressure is down. Everything is heavy as if there is more gravity. Wet blanket on everything. It is a profit taking day for longs, because they are finally getting their chance. It is a stopping out day for shorts, buying to cover.
Breakouts will have no power and are likely to fail.
Trapped longs will look to sell. A breakout could be manufactured/manipulated as a selling opportunity (realization as I am currently reading Reminiscences).
On up days in a bear market: shorts will cover, taking profits by buying.
An up day in a bear market is not a wholehearted buying day. It is a short covering day or a profit taking day for longs. There is a lot of selling pressure into the strength (wet blanket on everything). On up days, breakdowns will also not work because it is a short covering (buying) day.
