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Your statement: "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." probably
hits the nail right on the head. If I've been oserving this for some time
and, it appears, others have too then it's probably time for it to fail.
Regards, Randall
----- Original Message -----
From: "Michael Ferguson" <wl7bdn@xxxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxx>
Sent: Thursday, October 26, 2000 12:16
Subject: Re: [RT] Fw: Limit Down Bounce
> 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
> >
> >
> >
> >
>
>
>
> To unsubscribe from this group, send an email to:
> realtraders-unsubscribe@xxxxxxxxxxx
>
>
>
>
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