The most dangerous time to be short in an oversold market is during the overnight hours. Just treacherous if you are a bear and they gap up the market 10 points on ether. You're going to tell me that the market is gapping up because of below expectations Chinese CPI? Then how about the Chinese raising reserve requirement rates? Shouldn't that negate the positive data?
The disgust in the bear's stomach for not covering the previous day is overwhelming. To a lesser extent the disgust for underinvested fund managers who try to be cute trading the market.
You take your shots shorting intraday but to be short overnight is asking for trouble with the market this stretched to the downside. It feels like a strong gap up that will go higher intraday because I see no reason for us to be this high overnight, which makes it that much more likely to squeeze the shorts.
Subscribe to:
Post Comments (Atom)
Posts
4 comments:
This will lead to new highs before the real crash comes... we need maximum pain. This all goes back to the break above the 1150 right should last year and killing of the dead cross... when that happens you rally for approx a year then get smashed, death cross 86'Nov, crash 87'Oct. 06'Jul crash 08's Oct... 80's Apr crash 80 Nov crash.. failed death cross equals crash approx 12 months later.
Also do not like being short overnite -- always makes me nervous. Always.
But I don't agree the gap up was 'out of the blue' -- after so many down days/weeks, you had to know a big gap up was coming. That's been the pattern for more than two years now: even when you think it's not remotely possible, buyers return and the market gaps up.
Yeah, I hate being short overnight, especially when the market is oversold. The market seems to move just as much overnight as intraday over the last 2 years.
Post a Comment