well remember my post yesterday, the reason why there is sort of
a drought of good trade ideas right now is because the market has
just been going up and up and up without a meaningful
correction.
Technical patterns like Triangles, bull flags, pennants, etc
form during consolidation periods. When the market just goes
up and up without consolidation, it doesn't allow enough time
for a lot of these patterns to form.
Once the market finally does have a meaningful
pullback/correction, it will allow a lot more good trade ideas to
start developing and showing up again
meaningful correction would be 7 to 10%? Hard to envision in the
near future no?
I was watching a tech guy on TV last night (you know, the type
that likes to put trend lines everywhere in five year charts) but
he did make a point that a correction does not neccesarily have to
be in "price" but could be in "time" while indicators reset.
a correction of 3.5% would be about 50 SPX points, that is a
meaningful amount to me and certainly with plenty of potentially
profitable down and up moves!!
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Shorting here....?
Why is everyone talking about shorting the markets here?
Posted by zach06 on 9th of Feb 2011 at 01:48 pm
the professionals neet to bring the market down a little.... because they are running out of buyers at these levels... a little correction is good
You mean the shorts have
Posted by london on 9th of Feb 2011 at 01:52 pm
You mean the shorts have been getting squeezed lately and that's what have been pushing and making the markets grind higher each day.
shorts squeezed
Posted by zach06 on 9th of Feb 2011 at 01:53 pm
You have to wonder...when the market flies up with the tick being just over positive. You just have to be cautious right now.
well remember my post yesterday,
Posted by matt on 9th of Feb 2011 at 01:59 pm
well remember my post yesterday, the reason why there is sort of a drought of good trade ideas right now is because the market has just been going up and up and up without a meaningful correction.
Technical patterns like Triangles, bull flags, pennants, etc form during consolidation periods. When the market just goes up and up without consolidation, it doesn't allow enough time for a lot of these patterns to form.
Once the market finally does have a meaningful pullback/correction, it will allow a lot more good trade ideas to start developing and showing up again
meaningful correction would be 7
Posted by Palladin on 9th of Feb 2011 at 02:08 pm
meaningful correction would be 7 to 10%? Hard to envision in the near future no?
I was watching a tech guy on TV last night (you know, the type that likes to put trend lines everywhere in five year charts) but he did make a point that a correction does not neccesarily have to be in "price" but could be in "time" while indicators reset.
I'll take a nice 3.5% correction
Posted by perthx on 9th of Feb 2011 at 02:12 pm
a correction of 3.5% would be about 50 SPX points, that is a meaningful amount to me and certainly with plenty of potentially profitable down and up moves!!