Everyone has a different way of handling price
objectives. I prefer the exit trades at price objectives and then
re-enter when a move restarts in either direction. As of last night the
indexes had hit price objectives and the indicators were over extended.
There is another method of exit and that would be
at an entry price for the reverse trade, a correction. A couple of the
indexes have hit those entry prices and created price objectives higher.
Is this a restart of a bull move? I don't
think so. Can one make money being long? Yes. Will one have
to be agile? Yes. I find no reason to hold a position or shift a
position when price is moving against you. With no position you can
think clearly because you have no position to defend and you can go long or
short based upon what you see on the charts.
I know that Earl has been trading for years and
from my understanding, successfully. Different trading strategies is
what makes markets. Selling or buying projected highs and lows is
not my cup of tea. Others are successful at it. My motto has
always been, prove to me that you are going higher/lower and then I will
commit my funds. You don't get the high or the low that way, but
you can get that 80% in the middle.
Once again, just one man's opinion, Ira.
----- Original Message -----
Sent: Tuesday, March 06, 2007 7:42
AM
Subject: RE: [RT] extract from market
volume
No hedges. I have been short from 1463.50. Covered half last
night at 1377 and rolled half into June contract. I have orders
working to restore full short position (or more) at SPX levels
mentioned below. I have a couple of scenarios depending on depth of
retracement in this rally; however I fully expect a minimum of another leg
down into 1315-25 area before a correction (if that's what this is) is
complete. That said, I expect we will get more than a correction (at least
1200) but I don't have to decide on that now.
Earl
Hi
Earl,
[1] Will you prefer to hedge the positions as you open
them or will you take on un-hedged positions and let the stops
execute as each level is violated and then re-enter at the next
level?
[2] If per chance the market retraces to the 1430-1455 band
on the SPX cash will you take that as a signal of the prior uptrend
resuming?
Regards
Rakesh
-----
Original Message ----
From: EAdamy
<eadamy@xxxxxxxxx
com>
To:
realtraders@yahoogroups.com
Sent: Tuesday, March 6, 2007
8:17:35 PM
Subject: RE: [RT] extract from market volume
SPX hit the widely watched 200 dma at 1373.99 with 38%
retrace of rally from July low at 1371 ... should do it on the
downside for now. I have resistance at 1407, 1417, and 1428
which should be good places to restore shorts for next leg
down.
Earl
Short Term (lasts a few
hours to a few days): As it keeps pushing lower, the market continues to
accumulate more and more buying volume, which should soon serve to
produce a more sustainable short-term bounce than the ones we have been
seeing on an intraday basis (most of which were sold off). 5-day charts
show the surplus of buying volume that has been building up during most
sessions since February 26. 30-day charts of the NASDAQ 100, the S&P
500, and the Dow give a broader perspective of the strong sell-off the
market has been seeing, and to what extent the major indexes have
accumulated buying volume (in green on the SBV oscillator pane) during
this time.
Keep in mind that the market - because it is now in a
mid-term downtrend - will tend to show stronger downside reactions to
even comparatively modest amounts of selling volume. In other words, for
a sustainable recovery, a significant amount of buying volume will be
required.
In summary: The risk remains for moderately lower
levels on the major indexes, but the increasing amounts of buying volume
that have built up should soon prompt a short-term bounce within the new
mid-term downtrend (see Market Stage).
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