Friday, January 22, 2010

Crazy As It Sounds

It looks like I'm crazy buying during this avalanche of selling, but this market has not offered many good buying opportunities.  The dips have been brief and fleeting.  The volume was incredible today at 3.54M contracts traded.  I think its the most ES volume I've seen since early 2009.  A lot of liquidation was being done and the bull side lost quite a few followers.   My target is 1125-1130 on the ES. As crazy as it sounds, and as silly as I look now, I still believe that we're going to be back to 1140 in a few weeks. 

Despite my losses on the long side, I welcome this volatility.  Its possible to daytrade again.    

3 comments:

Petsamo said...

An interesting reading is "three black crows candlestick pattern". Google it. I don't think we're going back up, then down. I think we'll just hang around below until we meet the definition of a correction. Then, we'll rise again. I won't move into leveraged long ETFs just yet.

Petsamo said...

Another interesting term is the "bearish three line strike" which I don't think will happen. I think there's a better probability of a dead cat bounce, which probably won't happen either, because Asia and Europe will likely selloff. Question is will US rally Monday?

A Part of NY said...

Good Luck to you. I will continue to watch GS, AAPL, AMZN, BAC,C and GE. They lead and the others follow.

If the SPX cannot break thru 1090 on Monday then I may cover my shorts, otherwise I hold on because then next pivot is around 1060.

When the next TBTF bank gets into trouble and the FED does not bail it out (wipes out the shareholder and nationalizes it it) what do you think happens next? See you at Dow 1,000.