Interesting from Cramer re charts

Quite a few countries are doing very well.

AMSTERDAM AEX
India Nifty
France CAC40

have already broken the record high.
 
I thought the way trading works, is that when the market is making higher highs and higher lows, you wait for a higher low, and then get long to limit your risk. But I see that must be wrong. What you do is short new highs.
 
Retief said:
I thought the way trading works, is that when the market is making higher highs and higher lows, you wait for a higher low, and then get long to limit your risk. But I see that must be wrong. What you do is short new highs.
More...

It depends on where the price would go in the future and whether it's trending or in ranges. If the price is going up, that new high might be a breakout and you might get short squeezed if you shorted it and suffer even further loss if it goes into an uptrend turning that new high as support. This is the biggest limitation of technical analysis I find. Its ability to predict future price movement is very poor at times but then again nothing besides insider trading is good at predicting future price movement otherwise we will all be rich. LOL
 
For the market to make a serious correction, I'm looking for two things: 1) some movement up on interest rates 2) the VIX to fall below 15.
 
Jones75 said:
For the market to make a serious correction, I'm looking for two things: 1) some movement up on interest rates 2) the VIX to fall below 15.
More...

I'm actually looking for a break lower on rates. A move higher could cause some problems later but I believe in the short term a break lower is more of a risk-off threat.
 
You must log in or register to reply here.
Back
Top