A friend came over and asked me: $WLD has had five down days in a row. Does that mean it’s about to bottom out?
I told him: Five consecutive down days only tell us that selling has dominated over the past five days; they can’t tell us where the next candle will go. The five-day cumulative return is -19.94%, and today it’s currently up +3.02%. Whether to act depends on his own cost basis and plan.
He said: That’s basically saying nothing. I said: Exactly, because I really don’t know. Bullish or bearish?
I told him: Five consecutive down days only tell us that selling has dominated over the past five days; they can’t tell us where the next candle will go. The five-day cumulative return is -19.94%, and today it’s currently up +3.02%. Whether to act depends on his own cost basis and plan.
He said: That’s basically saying nothing. I said: Exactly, because I really don’t know. Bullish or bearish?