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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