hmm... [today's rally]

first rule of fight club - do not talk about fight club.

second rule of fight club - do not short on margin!


if we have another up day like this, the short squeeze will cause another multi-session rally in equities.
 
Interesting theory, but if one shorted (on margin) in the beginning of this downdraft, he or she would still be comfortable after a 2 day bounce no? Not everyone buys the top and sells the bottom. Additionally, as a trader, wouldn't one be taking profits along the way? This may be a short covering bounce, but someones gotta buy from the stock that will be for sale up around the 1250-1260 area. Mutual funds are not buyers here, as they have no cash to buy with. The hedgies are immaterial at this imho. Happy trading!
 
Quote from frank grimes:

Interesting theory, but if one shorted (on margin) in the beginning of this downdraft, he or she would still be comfortable after a 2 day bounce no? Not everyone buys the top and sells the bottom. Additionally, as a trader, wouldn't one be taking profits along the way? This may be a short covering bounce, but someones gotta buy from the stock that will be for sale up around the 1250-1260 area. Mutual funds are not buyers here, as they have no cash to buy with. The hedgies are immaterial at this imho. Happy trading!
More...


some good points grimey - i need to see 5 consecutive sessions of bullish bias before I will call an inflection point (reversal). This is KrazyKarl's rule-of-5. :cool:

The intermediate trend has been bearish for the past 6 weeks, the past few sessions could be:

-a sign of reversal to continue the longer-term uptrend
-oversold bounce

KK's rule-of-5 will tell. I just wish I had more experience translating market internals - I have a feeling that the A/D line and price action would sway me in the right direction for the call....
 
Quote from frank grimes:

Interesting theory, but if one shorted (on margin) in the beginning of this downdraft, he or she would still be comfortable after a 2 day bounce no? Not everyone buys the top and sells the bottom. Additionally, as a trader, wouldn't one be taking profits along the way? This may be a short covering bounce, but someones gotta buy from the stock that will be for sale up around the 1250-1260 area. Mutual funds are not buyers here, as they have no cash to buy with. The hedgies are immaterial at this imho. Happy trading!
More...
I'm short and not enjoying myself. But I'm still up on the month (I do long term trading).
 
Quote from krazykarl:

some good points grimey - i need to see 5 consecutive sessions of bullish bias before I will call an inflection point (reversal). This is KrazyKarl's rule-of-5.

The intermediate trend has been bearish for the past 6 weeks, the past few sessions could be:

-a sign of reversal to continue the longer-term uptrend
-oversold bounce

KK's rule-of-5 will tell. I just wish I had more experience translating market internals - I have a feeling that the A/D line and price action would sway me in the right direction for the call....
More...

The large correction the past few weeks was the market forcasting something: the fed will raise 500 basis points in June - then be done for the year.


Discuss. :cool:
 
I think this is a perfect setup when the feds raise then pause. Markets will go higher:

DOW: 11600
SPX: 1330
Russell 2000: 780

then next huge downleg (if that).

Getting ready to start putting in money on the Nikkei, too.
 
As always...over and over and over...etc, etc...


Buy the Dips - Sell the Rips

Long the Trounce - Unload the Bounce

Grab the Thud - Sell 'em Fast, Bud

In the Submarine - Get Out, Get Clean

Hit the Dump - Sell the Pump

Grab the Slam - Sell the Bam

Dive Into Hell - Ring the Bell


...So on and so forth...

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

:cool:
 
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