When I say stocks, that's indexes too. All the reasoning you can make is irrelevant, I think using fundamentals to talk yourself into your position is dangerous . I doubt we'll see 115 in IWM for a while. Yeah eventually we might crash but are you still going to be there ?
I will still be there because this is a long term trade... Talking myself into a position using fundementals is exactly the way every single professional traders do business.. except for pure chartists which are rare. People that manage billions of dollars dont just take positions because there is a chart setup.... many also like a fundemental backdrop to their reasoning. Pikers like 90% of the traders on ET... scalp the ES for a few points with their stochastic crossover.. which is all the reasoning they need.
I agree with most of what TrendFader is saying except for the crash. I belive that if the current presidential administration stays in power the markets will not crash. Everything feels like the late 60s early 70s the war everything. I expect the markets to stay range bound for for the next decade or more, just like the 60s and 70s.
The only catalyst for the crash is the massive debt problem and housing bubble.. or a major terrorist attack. Those are the 3 catalysts for a crash. There are probably more catalysts but these are the major ones.. and other catalysts will be tied to them. --MIKE
Dude.. regardless of the past.. my avg. cost on this trade is 120 right now.. and I will be scaling more into it as I build a position. Not real pain (yet). lol --MIKE
avg cost 120? well it seems you forgot to take profit 2 weeks ago! it's not too late yet to recognize your mistake ahaha
I don't like to short, but Im sure not a buyer of equities. The only thing I am buying is the US dollar. Monthly chart of Dow Industrials