Thursday, December 9, 2010
Playing Countertrend
Going short this market is obviously a countertrend play. It is very clear that the trend is up. I am not a trend follower but I don't like to short markets that trade like this. But the current market is unsustainable in its current form. We dip probably next week around the FOMC meeting on Tuesday, or the day after on Wednesday. With so many calls bought over the past week, I can't imagine much upside during opex week.
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4 comments:
Is it me or did the market use to be more volatile? No real pullbacks until it goes parabolic, then drop 5-7% to suck in more bears, and then rinse and repeat. Sucks for trying to get a good swing trade entry.
Maybe it's the QE2 and the responsible Europeans.
Volatility dies out with a bull market. When we get another bear market going, the volatility will be back.
The masses might love low volatility, but it sucks trying to swing trade. Bring back the bear please, so we can trade both ways. Wishful thinking I know.
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