We will exit the QQQQ long position on the open Monday as the VLE closed down today more than 4% from its recent swing high and closed below its 25dema. It will require one more day to confirm a new short signal as the 25dema has only declined one day. This applies to the Cabots Tides system as well.
It can be frustrating trading in a month like February for trend following system traders, yet consider how difficult January may have been for those who were trying to buy the bottom. It is probably true that those able to buy the swing lows and sell the swing highs in February made money but this is not where the big money is made in my opinion.
It looks like one more new low for the Qs before a substantial rally begins. However, the best course of action is to wait for a new buy signal before taking a position.
This weekend I will introduce a very simple but effective system based on closing prices that requires very little time to implement. I will recap the status of the system year to date.
The primary lesson to learn from February is not to be discouraged with losses. They are just part of this business.