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Seems to me that it is safe to buy after the limit has been reset, you have
plenty of room underneath to stop and reverse when the rally fails.
I agree that limit offer on ND appears very bullish for SP. Have not seen it
fail yet. Which I suppose means it will. Soon.
Haltingly,
Michael
----- Original Message -----
From: "Timothy Morge" <tmorge@xxxxxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxx>
Sent: Thursday, October 26, 2000 10:50
Subject: Re: [RT] Fw: Limit Down Bounce
> Randall:
>
> I seldom trade against the trend. And when I do, I usually regret it.
>
> That being said, I see the same thing happening time and again when the
market
> approaches the limit collars--especially in the Nasdaq 100 futures
[perhaps
> because limit down is a common occurrence in the Nasdaqs]. I usually take
a bit
> of profit as prices approach the collars and then if there is a bounce, I
can
> always sell that portion back out once I see price returning to the daily
trend.
>
> I guess that's taking advantage of the bounce, but in the direction of the
> trend.
>
> Best,
>
> Tim Morge
>
> James Alvis wrote:
>
> > > You might want to consider the risk of buying at limit down in
volatile
> > > markets, anticipating a bounce. Even if it works nine times out of
ten,
> > the
> > > tenth time can bury you.
> > >
> > > By the end of the day in the Crash of 1987, many locals who
stubbornly
> > held
> > > to their habit of buying breaks, had to sell not only their Porsches
but
> > > also their CME seats. Will it happen again? Without doubt. Will
most
> > > traders see it coming or even recognize the danger as it unfolds? The
> > > markets have a nasty habit of regularly surprising the majority,
including
> > > some traders that are supposedly the most knowledgeable and
sophisticated.
> > >
> > > Consider the risk/reward. Preserve capital. Trade against a strong
trend
> > > only with great care. The markets will always be open tomorrow for
those
> > > with the means to participate.
> > >
> > > Regards,
> > > Jim Alvis
> > >
> > > ----- Original Message -----
> > > From: "Randall Kurzon" <rkurzon@xxxxxxxxxxxxxx>
> > > To: "Omega-list" <omega-list@xxxxxxxxxx>
> > > Sent: Thursday, October 26, 2000 10:38 AM
> > > Subject: Limit Down Bounce
> > >
> > >
> > > > I have noticed that almost every time the SP or the ND are halted at
> > limit
> > > > down it is followed by a bounce. I've been watching that for the
last 5
> > > > years and as far as I can remember there have been very, very few
times
> > it
> > > > does not bounce. Any comments as to the reliability of entering a
> > position
> > > > right after the market starts trading again from limit down?
> > > >
> > > > Randall
> > > >
> > > >
> > >
> >
> >
> > To unsubscribe from this group, send an email to:
> > realtraders-unsubscribe@xxxxxxxxxxx
>
>
>
> To unsubscribe from this group, send an email to:
> realtraders-unsubscribe@xxxxxxxxxxx
>
>
>
>
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