You should be positioning yourself for a possible huge gap down Monday in the major indicies. If your holding longs going into this weekend your doing yourself a disservice. This is a bear market and you should plan accordingly.
I agree with what you say, but what's your reasoning? Mondays, in my opinion, are the hardest days to call.
I've learned classic technical analysis over the last couple of years, but I don't know ***** compared to a friend of mine that used to be in the pits. So I take my own opinions on the market with a grain of salt. LOL. This opinion comes via a trader much smarter then I that has made me plenty of money off his advise. Just sharing the information love.
The "problem", whether in Europe or here, won't be solved, ever, by politicians or economists. Each more clueless than the last. If the problems are ever to be solved, it will be through innovation and technological breakthrough, once again bailing us out of our own mess like it has every other time in the history of our species. The solution to debt is not more borrowing. That would be the definition of insanity. Truthfully, the solution to our debt is not less spending either, since we are well beyond reproach in that regard. The only other way out is to produce a heck of a lot more than we spend and owe, which thankfully we've managed to do through each stage of our evolution(economical) since the agricultural age to the industrial to the information. And that will be our only solution going forward, once again. Problem is, God knows how long that will take before the next great age begins.
Yes, but I don't think it is a matter of easy or hard. Just a function of time. Technological advancement is occurring at a parabolic pace, so I am optimistic of our future. When we cross the next great threshold will be anyone's guess, and led by whom/what is the greater(and more profitable) guess. Maybe GOOG is set to take over the world ala Skynet. Maybe AAPL will lead us into the Iworld(pls no). Until then, we will have to put up with the bickering politicians and economists chasing their own tails. Or even make some money shorting this market.
Outside of random news propping up the market I see this happening too. The market closed like **** and the financials look terrible. I started shorting a preferred stock ETF at the close today. Other than that don't have much short.
Experienced trader here. I've been very successful shorting this market since the start of April. Market is running out of downside momentum . I use technical analysis primarily-- looking for one slight push down in the overall markets (Dow/S&P 500/Nasdaq) on Monday's open followed by a 1-2 week rally. It'll be another bear market rally though, with us going much lower when its all said and done. I've exited my short positions --- Bought DELL Sept 14 Call @ .84 at the close. Will give an update when I exit...
I have recently revised my outlook-- looks like the rally will be of the 1-2 day variety now. I still believe we will have a much larger bounce-- but that will come after one more push down in the overall markets. SOLD my DELL Sept 14th Call @ 1.05 at today's close -- a nice 25% profit for a few days. Back in on the short side.... Today BOUGHT GMCR Oct 11 95 Put @ $8.90 at today's close. Expecting a 200+ point move downward on the Nasdaq before any short term rally will start. Will give an update when I exit this position again.
I agree with your premise, except I think the rally will be of the 5-6 day variety. Should bring us to around 1230 SPX, where I will be looking to short. Selloff should be short too, 8-9 day variety, where a larger rally may start, after we take out the lows first.
we are getting close to a gap fill from last wed. should be a good decent shot at getting short there.
I think we are getting above that. And once we break above the previous high around 1210 SPX, it should shake out a bunch of weak shorts, and suck in some late longs, setting up the reversal around 1230.
Since 8.8.11 we've been pretty sideways, but the trading range has been huge. Still a bear market unless little Ben hints at QE3 on Friday then we could see a lot of the resistance up top taken out. Very interesting stuff.
any reason why you think 1230? seems like a completely random spot. and it's not like we are going to jet straight up to 1210 from 1177. there will be a pullback and the likely spot is somewhere near that gap fill. but who knows...maybe we will run straight up to 1210:grin: it would be fun to trade!
Ok, it's really around 1225-30. And yes I have a few reasons. Why not? We already jet straight up to 1177 from 1120, in two days. What's another 30 points? Besides, I am not touching 1210. Sucker's short IMO, just enough to get you stopped out at 1230.
