Uh oh shorties massive rebound

stock_trad3r, please stick around though, regardless of what the market does. Don't hide for three months again. Just hang around. It'll be fun.
 
Dude, it's fine to be bullish, but taking almost 20% of heat in the broad market because your bullish is downright suicidal. If your taking that much heat and bullish, I hope your looking out 2-3 years with your trades. To be honest, I'm surprised your not down more than 20%, you must have some serious protection or just don't use leverage that much.

I was as bullish as you in October, but when they couldn't make new highs in December that was the sign. DOW is going for 10,780. I thought it may bounce before then, but if you want a Feb-07 or Aug-16 style bounce, it's probably going to have to go there. Maybe they put hammers in here, but still, take a look at the 3 year weekly's, they are all broken. Why are people going to buy this here? Only because it's oversold and look what's happen to the oversold buyers since 1370 on the s&P's.
 
... You should remember that this downtrend is based off fundamental concerns over the lending system, the housing market and the US consumer. These problems have been discounted for the last two years and are now starting to be priced in. Because market psychology works like herd psychology, the more the market drops, the more weight will be placed on fundamental problems. You can already see this happening in media reporting.
 
Quote from FerdinandAlx:

... You should remember that this downtrend is based off fundamental concerns over the lending system, the housing market and the US consumer. These problems have been discounted for the last two years and are now starting to be priced in. Because market psychology works like herd psychology, the more the market drops, the more weight will be placed on fundamental problems. You can already see this happening in media reporting.
More...


It has more to do with liquidity demand than anything else. Everyone wants liquidity right now but problem is, there is no one on the other side of the trade.
 
You may be right. At some point, you will be.

However, with the elimination of the short-tick rule, all these ETFs, and thousands of hedge funds that can't bear to be underwater, I think such rules are less relevant than in the past.
 
Quote from stock_trad3r:

And the chart

If we enter a bear market (S&P 500 closes 1252 or lower) I'll make a final resignation post requesting my ET account be disabled and that will be it.
More...

Even if we enter a bear market, you won't admit it. Hence, you'll never make a final resignation.

You'll be yelling "Buy now! Great opportunity, global growth strongest ever!" as the Dow falls through 8,000 (example).
 
Quote from plugger:

It has more to do with liquidity demand than anything else. Everyone wants liquidity right now but problem is, there is no one on the other side of the trade.
More...

It's like watching the Great Migration on National Geographic. The part where liquidity demand starts to form bottle necks can be compared to the tens of thousands of wildebeast that try to make it a cross the same shallow river crossing. That place is a feeding ground for crocodiles.

In the market place bottlenecks cause gaps up or down until counterparties are able to agree on price.

Quote from The Independent

Africa's biannual miracle is being performed again. The largest and longest overland migration on Earth is in full spate. More than two million wildebeest and zebra, with a few thousand gazelle hanging around the fringes, have reached the south-east corner of the Serengeti, in the early stages of their 800km northward trek from the parched plains of southern Tanzania to the damp grasslands on either side of the Kenyan border.

After a few days' grazing to restore their strength, this impossibly huge, braying assembly will risk life and limb by resuming a journey that they and their ancestors have been making twice a year since prehistory. Defying the long odds against their survival, they will set a course far beyond the horizon, following the smell of rain on the wind. Nine out of 10 will reach their destination but, just as they become accustomed to the creature comforts of their new home, they will up sticks again and head back to where they started. It almost defies belief.
More...
 
Quote from stock_trad3r:
I made my point. If we enter a bear market (S&P 500 closes 1252 or lower) I'll make a final resignation post requesting my ET account be disabled and that will be it.
More...
Umm.. Not sure if you are aware of it, but that's like 10 handles from here. Good luck.
 
You must log in or register to reply here.
Back
Top