What now? -
we don't want to play until we understand what is happening? One day doesn't make a market. We want follow through. The next couple of days are important.
Is the low in?
The next couple of days will tell us.
Our strategy?
Until the indices shows follow through or busts through another resistance, we are not playing.
our stance: we are oh-so-slightly bullish, given the nature of this rally. Why? because we are dead sure there are a million shorts out there who are caught flat flooted given the nature of this rally. It was a stealth rally with no warning and even the media is groping for reasons. Heck, even we did not get whiff of it, even though we were looking for a bottom sometime this week. Any down day and there will be short covering. Either ways, you can bet there will be a tussle.
If things workout fine, we could see 1150 on the S&P in a few weeks.
4 comments:
WOW!! what a wild day again?
Anyways, sold off all SSO when the dow was up 150 points, loaded up SDS near 960. It was too much too soon.
I hope you guys are safe out there. This market would have whipsawed the living daylights out of the bears for sure. Most of them were caught with their pants down until the last 10 minutes.
In my opinion, it is simply useless to trade this market without discipline. If you have a loss of 2-3% cut it.
Am I bullish or bearish?, Neither
I am waiting for 893 to get taken out for the bear case. Until then I am just playing an overbought condition.
Cut your losses and cut them quick. That's right, buddy. Even though the correction in the next hour will make you look stupid, better a small loss than a huge loss, because no one knows if that corner the market just turned is for 20 points, 50 points, 200 points, 500 points, or 1,000 points. I bought 500 shares of DDM at one point today and the market turned against me. Just as I was about to take a loss, it turned back. I was able to put in a stop loss 5 cents above my cost. After a trip to the kitchen, I returned and the DOW was down 170 points, I had stopped out for a today gain of $4.00 (not per share; total for the 500 shares after commission; that's $4 as in enough to buy lunch at MCD). If I hadn't gotten out at some point there, I would have ended the day with a loss of $1300 on those shares. Cut your losses small and quick. Say it again Clarke. Preserve capital.
Thats right hil.
The best thing is this market is such a fast mover, so if you get it right, you will make tons of money very quickly, same on the downside, you lose very quickly.
So the best money making strategy is to cut your losses very quickly and put trailing stops on your winners.
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