context I prefer trading individual stocks to indices because indices behave in a counterintuitive way. they work well with reversion-to-the-mean strategies as they happen to represent an aggregate picture, and that is what aggregates do. opinion indices are amazing at pointing out consolidation and expansion phases. they do this naturally as stocks move in...
- bearish sentiment in Europe - overextended rally on the monthly chart - decreasing volume on the monthly chart - crappy fundamentals - clean bounce off resistance on the monthly, weekly and daily (log) charts happy raiding!