Be Careful on the Long Side here...

Discussion in 'Trading' started by retaildaytrader, Apr 10, 2010.

  1. The big money was made on the big dips. Look at the following chart. When the stocks moving over their 50 day moving average went over 90, it was a great time to just be flat. Go on stockcharts yourself and find the times when the number stayed over 90 for any great period of wont find any.

    My expectation is for price to fall out of bed soon. Some will be shocked and surprised, but experienced traders who know about this will treat it like another day. Folks, when everyone is yelling you should be selling.

    You make money on the dips...the big dips...and daytrading only works until the trend changes and a few months of gains get wiped out in a few days. Dont be fooled here and go to cash now for your own good. Wait for the big dip and that should be week a few weeks...I dont know, but dont be fooled right now.

    Unlike real life where there are usually warning signs before things happen, the market doesnt give you any warning and just dumps when it so feels. The market isnt so generous and will just dump down killing any gains you made causing you to tilt...
  2. So are you short or not?
  3. The answer to that question I have stated in quite a few threads. I am waiting for a break of the 10 day moving average.

    I am not a larger player with tens of millions and dozens of accounts like the majority of the elitetraders on this board. I can simply flip the switch and get long or short in seconds. I need not worry about being premature or setting my positions ahead of time. I dont know what Doug Kass is thinking trying to fade the trend and you can see how he is doing it in his Twitter account.

    Maybe Doug has a lot more money to worry about then me, but I dont the same worries. I can simply get in and out as I like without the need to fade like Doug.

    I see the signs. I know better and know that big white candle up on Friday was just there to fool you on the SPX. The SML and MID did not close so assuredly.

    Every time there is that cockyness in the air, that euphoria just like January...only 3 months ago...then trader take warning. The storm may not be here right right now, but it will get here in the days to come. When the trend does change, it will do so quickly. Do not be the deer in the headlights holding on and hoping...
  4. Same here...I am not long forever.