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@xxxxxxxxxxnet
wrote:
from a close low of 1406 add 3% and you are 42
points
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@yahoogroups.com
> 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.