Is the Rally almost over??

trdrmac · May 16, 2003

This is probably old hat to many, but the notion of selling some long assets and replacing them with calls seems to make sense at this juncture. That way if we get another upside pop you get to play, but if not you have less toys in the sandbox.

I Missed Boat · May 16, 2003

I thought we were overbought too, but now I think we are settling into a tight range (consolidation) that is going to last for quite awhile (too damn long!!).

Trader5287 · May 16, 2003

From my vantage trading its emini today, there was a very definite and largely unnoticed break late in the day. The index itself was the leading loser -1.74%. Do not believe it has formed a daily bar like this in the last month but could well be wrong on that.

Geo.

hardrock375 · May 16, 2003

Quote from AmbushHillbilly:

The old saying comes to mind:

"The market can remain wrong longer then you can remain solvent"

I forget the source.

I believe it was Keynes. And, the quote is, "markets can remain irrational longer than you can remain solvent."

illiquid · May 16, 2003

Wait for that technical entry signal -- then plan on the most painful outcome for those who entered the trade

Seriously, that trendline on the SP is just too smooth -- IMO either it gaps down so hard that no one is able to sell much into it, or we breakdown through it, then stop everyone out with subsequent new highs. Shrug who knows . . .

AmbushHillbilly · May 18, 2003

Quote from hardrock375:

I believe it was Keynes. And, the quote is, "markets can remain irrational longer than you can remain solvent."

Thanks, hardrock. I'm always misquoting somebody. I get the idea right, but I forget the exact phrase. Damn, I hate getting old (not a misquote this time - just a sentiment).

spreadem · May 18, 2003

This is probably old hat to many, but the notion of selling some long assets and replacing them with calls seems to make sense at this juncture. That way if we get another upside pop you get to play, but if not you have less toys in the sandbox.

Or you could buy puts!

JT47319 · May 18, 2003

Heres a saying, albeit butchered:

If the market isn't doing what you expect it to do, then its going the other way.

spreadem · May 19, 2003

I had been getting short all of last week expecting a day like this. Now I do feel vindicated a little bit because a couple of people bashed me about getting short in such a strong market. Such is life, when you play the short side. But when the market breaks like it has today ... it makes it all worthwhile.

Maverick1 · May 19, 2003

Quote from spreadem:

I had been getting short all of last week expecting a day like this. Now I do feel vindicated a little bit because a couple of people bashed me about getting short in such a strong market. Such is life, when you play the short side. But when the market breaks like it has today ... it makes it all worthwhile.

The game is on. Will it be a mere pullback or the start of a change of trend?...

I love how the reversal day comes at a precise gann number in time.

Maverick.