Paul Tudor Jones would not approve (Losers average Losers!) but I added an additional SHORT position at 10905 in the MAR DOW futures. I agree with Mr. Jones in principle but I also believe that you'll rarely, if ever, sell the high tick. So, if my original plan is to be short two contracts, I'd rather SELL one and average in the other trade. Over my many years of trading I've found it to be an excellent risk management strategy.
I'm not going to place a physical STOP at this time but, if the market registers a close above the previous closing high of 11010, I'll exit the trade.
Dale F. Doelling
Chief Market Technician
Trends In Commodities
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