He gets the skinny from Cramsky.
Can't believe the market lost +4% today!
- Thread starter TheDawn
- Start date
And they picked Target!! Like seriously??!! The freaking company's weight is only 0.29XX something in the entire index. And it was able to bring down Walmart and Amazon!! What does Amazon have anything to do with Target??!! It's not even operating in the same segment, one is brick & mortar and the other is online retailing. The entire index was down except for three companies. https://www.slickcharts.com/sp500 That was absolutely ridiculous!!
I don't want to sound like a conspiracy theorist but today looked like a shake-up by the MM's against the retail traders. The level that the market stopped at, 3915 for S&P500 is just way too arbitrary. It's neither a fibo nor a support/resistance level. Why stop there? Why not 3858 which is a previous support of 2 days ago? Why not the fibo level of 3816? Why stop at 3915? Why not higher at 4000? I don't have the books but I bet you there were a lot of retail positions at 3915. It's just too suspicious that the market turned right around at 3915 clean.
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Sometimes a shorter timeframe can provide closer stops. Trading daily bars require a higher altitude view than a 1 minute chart. They can both take your ass to the cleaners tho, lol.
And they don't even operate in the same segment. One is discount retail, one is online retail and one is brick & mortar. Go figure!
Yeah because of today, now we know it's a dead cat bounce. If it had been an up day today, yesterday would've been part of a reversal.
It's a measure of the pulse of the consumer. And I think what you have to look at deeper is what they said in the conference call. That going forward, they see their margins eroding even farther due to inflation. <------This is the key point.
The fact that all three were bad, means all of the retail space is facing a headwind. If one or two were bad, OK. But lump them together, and 80% of the US economy is going to shrink, because the US economy is 80% consumer.
A trader who wants to respect their stops can reduce position size to account for the risk of an adverse move from entry to stop, the stop gap is used as a criteria to calculate position size along with percent of account value, whichever applies.
Here's CPA Trader Stevo layin' it down....
One man's Position sizing - Stop calc tool.
https://www.elitetrader.com/et/thre...t-right-here-baby.335635/page-25#post-5549800
and represent the health of the consumer who ultimately consumes all the gdp.
Warren not spared
