For those who read IBD regularly this should be old hat, but I thought it would be instructive to repeat the following from IBD's Market Pulse today:
"But keep in mind that some follow-throughs fail. A confirmed uptrend is not a green light to buy anything that moves ..... Open half positions and follow up if the stock proves itself." (Bold by me).
The same applies to any trend following methodology. Yesterday also saw valid buy signals using the Cabot Tides, Weekly-Daily, and MACD systems. The Donchian and Breadth-Momentum systems remain on a buy. These signals are not a license to put the pedal to the metal. Sometimes the market can run away from you, but I don't get the feeling that is going to happen this time.
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