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well, I'm predicting the shorts will get hammered!
the key is the volume and breadth - the market has been consolidating in a
narrow range for nearly two weeks following the huge surge off the bottom -
if it was gonna crap out it would have by now - instead the "tone" has
remained firm throughout. Also note that the the bearish sentiment has
refused to decline during this period (at least for last week, don't know
about this one). It seems like a perfect situation - if stocks had continued
to shoot up the rally would have been unsustainable. This little pause is
allowing stocks to finish forming their individual basing patterns. Some are
outperforming - ones that were making new highs (and there weren't too many)
back on 5/24 when the reversal happened are doing exceptionally well. I
believe I made a posting to this effect at the time. Might have been the
O-list, I don't remember. My favorite pick was ADCT - it was barely affected
by the correction while most stocks were destroyed. I remember someone
thought it was "overvalued". (Warning: This kind of thinking will lead you
to buy stocks in downtrends!!!). Also went long the futures on 5/24.
Increased 3 days later when the market followed through. And again on 6/13.
Waiting for the next leg - meanwhile the boredom has been alleviated by all
the daytrader chatter on the RT list....
rgds phil
http://www.patterntrader.com
disclaimer: Sometimes I'm dead wrong!!!!!
----- Original Message -----
From: Michael Ferguson <wl7bdn@xxxxxxxxxxxxx>
To: <patterntrader@xxxxxxxxxx>; <realtraders@xxxxxxxxxxxxxxx>
Sent: Friday, June 16, 2000 5:45 AM
Subject: Re: [RT] Re: S&P Bullish view
> Or, a narrow sideways channel, butting up against resistance. The question
> is, are the longs or the shorts facing higher risk?
>
>
> Michael
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