Yes, I am demonstrating that when one sells in an oversold market, one must have a wide stop in order to give themselves a chance to be profitable at some point. Otherwise, the trader will be stopped out many times and eventually end up with more losses and commissions than the original wide stop would create. The other option would be to wait for a new sell signal where the stop could be placed much closer.
The backdrop of this pop up (i.e. Citi rescue) is very odd. First, it avoided bankrupcy, ok. But, its bad mortgages will stay forever bad (super discount payment for the disstressed owners) and it cannot issue foreclosure on anything into the future. Isn't that subsidized housing? That cannot be good for its earning ... I may have to wait for the open to see what the actual impact is Edit: My logical thinking says most if not all mortgages hold by such banks in the future will be collecting this kind of "discount payments" in the very near future
Please refrain from posting analysis of Jack Hershey here. There are other places for that. If you would, please delete your previous post. Thank you in advance for your consideration.
818 shut out play again, implying at least touching 778. 808 trend line defense ... if successful, will upset the shorts leading to 840.
Looks like a brick s...house at 825-28 and some early, shorting 23.75,25, and 28, 1st target 808, stop 35
Only way to have extended gains is to forget about support in a downtrend and resistance in an uptrend. IMHO
This trade is meaningless because: 1. Either win or lose, it won't effect your portfolio because of its small size. 2. Nobody trades here with 280 pts SL (or should). 3. Chances are that it will expire sooner than any meaningful profit can be taken. Not to mention it is against my bullish view. P.S.: we are just reaching the SMA on the daily around 835, a nice try for a short....