A friend came over and asked me: “$PUMP has had five consecutive down days. Does that mean it’s finally bottoming out?”
I told him: “Five down days in a row only tell us that selling pressure has been stronger over the past five days. They can’t tell us which way the next move will go. It’s down 16.98% over the past five days and currently up 1.61% today. Whether you should trade depends on your own cost basis and plan.”
He said: “So you basically didn’t say anything.” I said: “Right, because I really don’t know. Will the market turn around from here?”
This is not a recommendation. Make your own trading decisions.
I told him: “Five down days in a row only tell us that selling pressure has been stronger over the past five days. They can’t tell us which way the next move will go. It’s down 16.98% over the past five days and currently up 1.61% today. Whether you should trade depends on your own cost basis and plan.”
He said: “So you basically didn’t say anything.” I said: “Right, because I really don’t know. Will the market turn around from here?”
This is not a recommendation. Make your own trading decisions.