Wednesday, December 2, 2009
Coiling Up To Spring Out
We are a critical juncture in the market, we've gone sideways for the last few weeks, and are close to the long term objective of 1120 for many traders. The convulsion last week serves as a warning sign about future market action. The market always gives hints about its future direction a few days before it makes it move in earnest. This happened on June 5 before the swing lower starting June 15, and October 21 before the swing lower starting October 23. These were 10 day swing moves, that were 70 to 80 point moves on the downside. I see a similar set up now that we've reached a level where the market is struggling to break out. We may have a false break out which could be the perfect spot to get short for the next ride down.
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9 comments:
I hope you're right dawg.
There's a problem though. We made a new damn high again. Again man.
Unfreaking believable.
So now that we broke the resistance, how u'all feel about this market now dawg.
Are you still gonna get short at 1120?
I forgot to mention.
Sold a portion of WXCO @ 1.43.
Market is reluctant to go higher anytime we go above 1110. Today we had stops being run above 1112 and we came right back down. A sell set up is coming soon. I want to get short on Friday or Monday. I haven't decided yet what day.
Marketowl: do you trade futures, and if so, which contract? I am ready to ditch the etfs. Still want the leverage however. What do you say of this concept or thought?
I think you should. You can't get higher leverage than futures. ES offers about 10 to 1 leverage. For 1 contract, initial margin is 5625 and the maintenance margin is 4500. The value of the contract is 50 x index, so about $55000. The good thing about the ES is that it can be traded overnight.
If you want maximum leverage you need to trade at a day trade bucket shop like assent trading. There's tons of other ones.
All these places can give you 20 to 1 if not more but you can't hold overnight.
Just get 20 to 1 and buy 5000 shares of GOOG and go nutz.
Better than the lottery dawg.
Yo sold the rest of WXCO @ 1.54
What's the gameplan dawg?
How you feeling?
We didn't crumble today like we needed to.
Now tomorrow is coming up, and Friday has the possibility of being a major Bear annihilation day.
A fucking Bear Bash 2009.
I hope we can go down a little bit tomorrow, otherwise I'm gonna have to average down big time on EDZ.
And I was thinking, looks like a lot of destroyed small caps are turning around. And most of these are in the gutter.
Maybe they are rotating into small caps. The last two days was huge for biofuels, which are mostly small caps.
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