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Hello Steve,
Well I only deal with stocks. That is my trading universe. So if you felt you
had to take my observations on shorting to futures trading, ok. But did you
apply my observation correctly?
For a little clarification, if I am looking for a stock to short. It will have
some specific technical characteristics. Like having the superposition
stochastic be above 80 and the Daily and weekly JF are pointing out into space.
i.e., the stock has had a good run up and to keep the same trend would mean
that it would have to have a good move up and above the previous weeks (or
days) moves.
So this is the ideal technical place for me to take a short position. Now when
I take a position at that technical place, i.e., after a stock has had a nice
run up. And the stock moves against me a few points, then I have found that in
the past it is best to average and hold. So this is the context to which I made
the comment, "Well for one you should never cover a short on a run up". And the
words "run up" means the second run up that goes above this ideal entry place.
And lastly to make another clarification, I did not enter my AMAT short under
these conditions.
Harley
Steve Karnish wrote:
> "Well for one you should never cover a short on a run up."
>
> Gee, Harley, I got really "screwed" in corn today. I shorted a couple of
> weeks ago and have had a little profit in it until yesterday. The USDA
> released a really bearish report yesterday and the market started on the
> downside after the opening. I had a few contracts and my "closest friends"
> had some also. We were all going to get rich on this one. I had about an
> eight cent profit for a while yesterday. Finally, today, I got stopped out
> two cents above my entry point (above the fib retacement and downtrending
> line) and ten cents above yesterdays low. I need for you to explain a
> better way to protect myself from the conspirators at Cargill (those
> bastards bought out Continental yesterday and I'm sure they decided to
> specifically go after my corn stops). In the future, should I let my
> losses run in a short position? I was in a similar position a couple of
> weeks ago when I was short the yen. I was in a "short" position and I kept
> moving the stop down and the market started to "run" up and I got stopped
> out with a $1,200 profit. Maybe I should of stuck around. Remember you
> say:
>
> "Well for one you should never cover a short on a run up."
>
> If I would of taken your advice, I would of only been out of pocket an
> $13,000 a contract. But hey, the yen's coming back down and who
> knows...one day it might even come back down to the level I got stopped out
> at.
>
> Harley, you seemed mystified why Rick would take a shot at your postings.
> I can't speak for Rick, but I think a lot of what you say is very
> dangerous.
>
> Steve Karnish
> CCT/CTA
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