Going short in these markets is stupid. You will lose your money very quickly once stock rebound. Infact, even a tiny nasdaq bounc e of just .05% can cause stocks to move .25% in a positive direction. And a .3% nasdaq advance is anough for a 1.5% or greater advance so losses can add up very quickly.
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Bull Trapping Part II or Sell the Bounce
- Thread starter duard
- Start date
Quote from duard:
So what about tomorrow. I would not treat today's slump as break of support. I would require confirmation before selling...
Well that was fortuitous. That blip below, yesterdays low met with buying. Which was a negative for continued selling hence the lack of required confirmation noted above.
Anyways the fireworks begin tommorrow and I'm out of range mode and back into momentum mode. Follow the money....
Well here we are in a range again.
Alot of buyers nervously gnashing their teeth as a low volume drift sideways occurs. Gonna be some nice moves ahead again as the bulls/bears fight it out.
My view has not changed. The spurt up was easily telegraphed but now it's harder to discern the short-term move. Again I think long-term we have entered a bear.
JMHO
When in doubt follow the money.
Alot of buyers nervously gnashing their teeth as a low volume drift sideways occurs. Gonna be some nice moves ahead again as the bulls/bears fight it out.
My view has not changed. The spurt up was easily telegraphed but now it's harder to discern the short-term move. Again I think long-term we have entered a bear.
JMHO
When in doubt follow the money.
Not sure if SHORT anytime soon is what the market is saying. Im not bullish by anymeans. however, from todays action, this is my take.
Retail sales will be weaker than expected
Maufacturing numbers were weak but still above the bullish number of 50.
Homes sales are slowing.
Oils prices are slightly less and will stablize now that we know NKs missles "SUCK".
Unemployment is healthy.
All points to the "FEDS" and Intrest rate nutrual stance.
And I wouldnt wana be short if "feelings" on the street are that "FED TIGHTING" is over.....
Retail sales will be weaker than expected
Maufacturing numbers were weak but still above the bullish number of 50.
Homes sales are slowing.
Oils prices are slightly less and will stablize now that we know NKs missles "SUCK".
Unemployment is healthy.
All points to the "FEDS" and Intrest rate nutrual stance.
And I wouldnt wana be short if "feelings" on the street are that "FED TIGHTING" is over.....
Quote from ERoptions:
Not sure if SHORT anytime soon is what the market is saying. Im not bullish by anymeans. however, from todays action, this is my take.
Retail sales will be weaker than expected
Maufacturing numbers were weak but still above the bullish number of 50.
Homes sales are slowing.
Oils prices are slightly less and will stablize now that we know NKs missles "SUCK".
Unemployment is healthy.
All points to the "FEDS" and Intrest rate nutrual stance.
And I wouldnt wana be short if "feelings" on the street are that "FED TIGHTING" is over.....
Agreed however, historically, the end of tightening has meant a 10% drop going forward. There is alot of supply ready to be dumped on any big moves up. People are vacationing. When they get back and we get some volatility that is when we'll see where we go and I'm not so sure it's up.
Well now the equity indexes sit at a crossroads (again). Divergence in the SIF's have set-up a potential blast higher as buying and selling have balanced. The set-up (to me) at least technically looks bullish. However complicating the picture is the fact that last week was low volume post-holiday trading and we have the overhang of fundamentally neutral to bearish conditions which tells me to "Follow the money." I don't know of any other way to trade this as IMHO it could go either way as conditions are "balanced."
If we go higher participate if we go lower participate. Be one with the flow and the current will carry you grasshopper.
Good Luck
If we go higher participate if we go lower participate. Be one with the flow and the current will carry you grasshopper.
Good Luck