Actually, engulfing candles (like we had yesterday) are almost always followed by a 40-60% retracement. I was looking to buy at 50% today but it never quite made it there. Buying the close of an engulfing candle is rarely a good idea.
i held a vz short for about 1hr-it went against me so i waited til it pulled back to was near my breakeven...got out at 3.20pm...friggin sob tanks 1.50$ in the last 20mins
This is a great point. I've read that before but didn't think of it until you mentioned it. A tractment would be ok but the selling pressure in the final hour was incredible. And closing on the lows wasn't necessary either was it? I guess I'll tighten my stop and hope that there isn't a gap up on the next open. I doubt that will happen..
I was watching fast money the other day and they actually said something I can agree with that this market is not a buy and hold market any more, this is a totally different market than it was just 10 years ago, there is no such thing as buy and hold, with the price movements we are seeing in the markets where you are seeing 5-10% moves in a week.
yet they continue to sugest buying stock picks and when have they ever said to short a particular stock?They recommended aks last month at 14..its now 7. Bottom pickers. That guy seymor has probably lost 80% since hes an emerging growth guy and he was gung ho on it at the top...i bet that guy cant sleep at night...