Re: [RT] Time to cover the shorts??

[Rakesh Kumaar Sahgal <rakeshkumaarsahgal@xxxxxxxxx>]

On the basis of EOD charts:

[a] In terms of price correction the rise from 1363 to 1555 has been corrected fully.

[b] For me to assume that the fall is going to be prolonged and the current leg of the downswing has some steam left in it, the recent low of 1370 will need to be crossed on a closing basis.A close below the 1370 low would clearly demonstrate the weakness in the market.The very high volatility level and the massive intra-day ranges though cause the stop loss levels to be too far from the entry point and that is a risk anyone entering the market at the current time will have to live with.

[c] For me to assume the upswing of the past couple of days is tradeable to the upside we will need a close above 1445. If one were to enter a long trade now on the basis of a close above 1445 , the StopLoss level I get from the method I use is way too far to provide any comfort. So as of this moment I would avoid a long trade. I would enter a long trade IF
 I get a buy signal from my method POST a HIGHER LOW. Such a buy signal would inspire confidence as [i] it is coming after a vicious correction to the prior up move, and [ii] there is clear evidence that the low for the moment is in.


R



profitok@xxxxxxxxxxxxx wrote:

from a close low of 1406 add 3% and  you are 42 points

we already reach  1450

using tomorrow up  100 to 125 to short

Ben

----- Original Message -----
From: BobsKC
Date: Thursday, August 16, 2007 2:33 pm
Subject: Re: [RT] Time to cover the shorts??
To: realtraders@xxxxxxxxxxxxxxx

> I have just closed my shorts and am now entering some of the
> beaten
> down commodity stocks such as TCK which has huge asset to
> liability
> balances and a PE of 7. Still, I am holding on to 70% cash.
>
> Bob
>
> At 10:52 AM 8/16/2007, you wrote:
> >The way the charts look the current leg of the downside(if
> there is
> >more to come that is) does seem more or less done.
> >
> >Not a case of hoping against hope but wondering if it is time
> to
> >take money off the table in case of standing short positions.
> >
> >R
> >
> >
> >
> >
> >
> >Boardwalk for $500? In 2007? Ha!
> >Play
> >Monopoly Here and Now (it's updated for today's economy) at
> Yahoo!
> >Games.
>

---

Boardwalk for $500? In 2007? Ha! 
Play Monopoly Here and Now (it's updated for today's economy) at Yahoo! Games.
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