Extreme panic

[themickey]

Usually at that point of the market is when the news begin to announce bankruptcies of large companies in ever increasing numbers. Not happening yet I don't believe.

 

[JSOP]

Ok first, calm down!! Second, what's the panic? What are you panicking about?

 

[toc]

GS bull/bear indicator is again at the levels of 2000, 2008 and slightly lower than the levels of 1968 and 1973. All these years, markets saw sharp corrections.

 

[TTT]

They see him?
there is extreme panic

 

[Ayn Rand]

Volume is picking up a little bit on the downside but no where near panic. What has to happened is some or one very large highly leveraged trade has to belly up.

It was like in the market collapse of 2008 when positions were leveraged 50 to 1. When positions like this start to go down there is no where to go but down.

**This is an aside. How do you get 50 to 1 leverage??**

 

[AlexandruGabriel]

Extreme Panic?
No problem, the solution it's called "9-5 job" there you don't get as much panic..

 

[murray t turtle]

Volume is picking up a little bit on the downside but no where near panic. What has to happened is some or one very large highly leveraged trade has to belly up.

It was like in the market collapse of 2008 when positions were leveraged 50 to 1. When positions like this start to go down there is no where to go but down.

%%
I was walking along in a grocery store+ was startled with an unusual sight=a William O 'Neil investment book-''24 Essentials.........'' @ about 50%-70%+/ off list price=$4.98.I shopped some more+ saw on the back=something like ''Cramer Berkowitz hedge fund likes this book'' Bought that.

Buying below 200dma seldom works; unless one gets paid on the gross.....

 

[Scataphagos]

Buying below 200dma seldom works;

Axiomatic... "Don't buy stocks in a down trend".

 

[murray t turtle]

Axiomatic... "Don't buy stocks in a down trend".

%%
Dont buy on a bear rally, also.
ETFs can be different.Partial disclosure ;QQQ mailed me some uptrend good charts.But even if one made money on QQQ longs+related , many would remember it went down about 80% in Bear of 2000-01-2002.LOL

 

[Scataphagos]

%%
Dont buy on a bear rally, also.
ETFs can be different.Partial disclosure ;QQQ mailed me some uptrend good charts.But even if one made money on QQQ longs+related , many would remember it went down about 80% in Bear of 2000-01-2002.LOL

All of us traders seem to want to "nail the bottom of a big trade". Of course we do! But the reality is that most of such attempts are not successful.

Personally, I like to try to "stab a bottom"*, but I ALWAYS trade with a tight stop.

*I understand that's contrary to the notion of "don't buy stocks in a down market". But I'm also of the school, "you can play ANYTHING that seems reasonable and for which you can make an argument"... with a tight stop.