Now the whole market is so called over-bought situation as most of the trader analysts agree. Is it time to sell the stocks?

RSI7 is used to alert buy opportunity,but also used to sell the stock at the right time.

The Distribution Zone is where the RSI-7 has lifted above 70, and the Sell Alert is where those RSI’s fall back below 70.

I don’t know but it seems that the imminent quick drop is most likely to occur. Also many analysts believes that the another drop will come into September before jumping back in 2010.

Trading rules by Tim Knight

I have came across Tim Knight’s Trading Rules blog and loved it so I have quotes it today’s blog.

Stops – a stop price must be in place at all times for all positions.

Exits – the only acceptable exit is either being stopped out of a position or reaching a target price which has a clear technical rationale, and even in cases of the latter, partial exits are preferable to outright closes.

Trend – the trend of the market is defined by the 13-week EWA and 52-week EWA of the $SPX. Based on the relative position of the 13-week EWA, the market is either Up-Trending (13-week EWA above the 52-week) or Down-Trending, and no more than 20% of the value of all your positions may be positioned against that trend at any one time.

Freshness – positions should be regularly updated for the sake of updated stops.

Opening Bell – no new positions should be initiated in the first 30 minutes of any trading session. There are an astonishing number of pre-opening orders, and in my experience, I have found it better to let all the open bell excitement die away before getting into any new positions.

Emotional Awareness – use emotional awareness to your advantage, understanding fear often accompanies reversals in your favor and hubris often accompanies reversals against your positions. My state of mind, when trading, will be carefree and fearless, and my total focus will be technical considerations and I will only trade what I see.

Sizing – position sizing must be consistent among instrument types irrespective of anticipated opportunity.

The answer is simple . You must be active and closely monitor your stocks.

Time Knightis a active commentor in Cara Community Com. He is an software developer and active trader with professional insights and knowledge in stock trading.

Today we had another gain day for MICC($75.84 – 8.25%) . It’s so amazing. It jumped more than $10 in the past 3 days. And I am somewhat worried now. The market in general has been bullish for the past week and half continuously and some people see that tomorrow Friday people will dump the stocks for some profits.

I believe in long position, but in this recent ride, I am kind of worried. I bet other traders feel the same way. And eventually that feeling will lead the market bottom tomorrow.

Today’s RSI7 monthly weekly and daily for MICC are 59.8 , 77.5, and 92.2.

I spent some time what to do whether to sell MICC or not during the after hours , but decided not to. After all, I believe in long term investment and I believe MICC is a good company to invest in.

See the comments from billcara community blog

Millicom Q2 earnings were down from $1.22 to $1.05 2Q2008 and down -12.5% over the consensus estimate of $1.20. The stock surged on more than double the average daily trading volume. The good news, apparently, is that total mobile subscribers increased +25% Y/Y to 30.8 million, and that operating free cash flow will be in the mid teens this year despite bad economic conditions. The Daily-Weekly RSI-7 is now a very risky 91.5 and 83.5, respectively.
http://tinyurl.com/mw42ja