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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well remember my post yesterday,
Why is everyone talking about shorting the markets here?
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!!