I've observed over the years that weak closes don't necessarily portend bad things for the next day as many would naturally assume. Now this is what I've noticed in the stock market, the commodities and currency markets behave differently.
In fact, more often than not, it is a better risk reward to get long on a weak close than a strong close. Actually the weak close yesterday makes me a bit less bearish on the short term. Fast Money remarked on the weak close and it made them hesitate a bit on their bullish views. That makes me a bit nervous on the short side.
The main piece of information gained from yesterday was that 1230-1235 is a sweet zone to get short at. It helps define the risk on the short side.
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5 comments:
Covered PUDA @ 11.80 (short from 13.51)
Cash money ya;'llz
Ol DAWG
Short more GMAN @ 17.38
OL DAWG
Long more TZA @ 17.00
Ol DAWG
Nice trade on PUDA. I've been noticing that a lot of these runners that go up a lot have secondary offerings a few days after the run up.
It would be very nice for GMAN to also have a secondary. I doubt it however. (recent IPO)
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