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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