If the "trend is your friend" is generally accepted wisdom, then how do we also accept the generally aknowledged wisdom that most of the people are wrong most of the time? I for one will ALWAYS buy a drastic down move, and short a drastic up move (be it in the market or a specific issue). Now my style is to buy strong stocks on a reasonable dip, and short weak ones on a bounce. But when I see a situation like IRF today, I am a buyer. Did it work? No....but these plays have to be kept tight on the losing side. Lundy feels this is a bottom in the market. So he is buying. Me, I wasn't so convinced until he got so overwhelmingly outvoted. Buying here. Buying now. We shall see. Good luck LUNDY!!! buying INTC MSFT EBAY
Another smart trader once told me......when all the newbies decide to plunk in their money its time to either get out or short the market. Now that the market is crashing, many are saying the bottom is here. They ar enow opening their wallets and gonna dump in some much needed cash into the market. It will probably show for a nice little bounce. But reat assured, the boys controling the up and down switch will not let them make money. Right when you feel the millions are on the way they flip the switch and take away all your money. My job (should I decide to accept it) is to figure out when these guys are puching the switch or down. This message will self destruct (as did my portfolio) in 5 seconds.
depends on your time frame I suppose. If something is in a downtrend for the last year and for the past 3 months but has been in an uptrend for a few weeks and has a high stochastic, then I will "fade" or bet contrary to the short trend thinking it will reverse.
And just WHO are these boys that control the up and down switch? I thought they were us? Guess I am wrong again?!?!
i don't know who or what but there are times when one sees concerted action....and then there are the times when the concerted action is like a school of fish darting about, not premeditated. and then the time when a shark comes in because he know what the school will do when it sees him.
The big fat guy with the cigar in his mouth sitting back and laughing at us. He sits behind the two way mirror glas and flips the switch up and down. Similiar to the guy that flips the switch for the electric chair. Same results.
I don't know which side is right or wrong. Besides, I am not trading right now. And even if I did I would not be overnighting. So wether Monday is a big up day or a continuation of the drop, I will not be effected (as far as trading goes). As a daytrader, nothign better than big swings in the day. If the market gaps up Monday, I will prepare to short the hell out of the market. If it gaos down, I will sit back and wait for the bounce than short it. Either way, I won't be pouncing on the market until it shows me at least 3-4 cards of its hand. And I wish you and rs7 loads of luck. I gain nothign if you lose and I gain good feelings knowing someone out there makes a bundle. I reallyhope you guys really cash in. I myself am looking at some leaps on the SPX or NDX. Maybe spx 1300 to 1400, or NDX 1400-1500. Nice price and a couple of years to wait. But I still sit back and wait. Maybe soon. Good luck all