We recently said that only the bold would be in to this volatility plagued market. Then we looked at the chart again. There is a breakout (A) from a triangle and a breakout from a congestion area (B) with good volume patterns. So we said to ourselves if volatility causes equity swings we’ll just grin and bear it.
Another thing which influenced us was the PnF chart of the INDU.
We think that when price escapes this enormous sideways pattern explosive prices will result.
At the same time volatility traps await investors and the joker in the deck is Donald Trump. Who knows what wild tear he will take off on? But, withal, the economy spawned by Obama chugs along. So we held our nose and jumped into the cold water. Our reentry was with a small tranche and we will add on cautiously as the chart warrants.