ES Journal Archive (2011)

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Quote from BoyPlunger:

stopped at 33, reshortgin tho, still looks weak.
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What you call "weakness" is simply consolidation. A wise trader once set me straight on that. Higher highs and higher lows is not "weakness", it's giving enough time for shorts to buy into the premise that they've picked the top. Once enough are committed and have their stops above the consolidation, then buyers will often blow it through the roof, relying on their stops to take it higher.

I'm not predicting that's what will happen here--I mean, it has to come down at some point. But it often happens.
 
Quote from jimbo555:

don't need a stop when your right
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Being right is causing you to be underwater $400 per contract right now, hope it's worth it. The market gave you three opportunities to get out with a profit as it was making higher lows.
 
Quote from JoshDance:

What you call "weakness" is simply consolidation. A wise trader once set me straight on that. Higher highs and higher lows is not "weakness", it's giving enough time for shorts to buy into the premise that they've picked the top. Once enough are committed and have their stops above the consolidation, then buyers will often blow it through the roof, relying on their stops to take it higher.

I'm not predicting that's what will happen here--I mean, it has to come down at some point. But it often happens.
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i agree. maybe we have different interpretations of the word weakness. stops are being blow now that we are at 1138. to me i use weakness in the broader sense of the word. this is the same kind of "weakness" on september 27. daytraders thought the price action grinding higher was strength and sustainable. whereas someone like me who scopes out spikes to fade was looking to short that.
 
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