I believe you are right on this. I have a tendency to be longer term than what you are and so I suffer some of the bouncing etc, while I try to get the big move. You most likely obtain more gains playing the "channel", but you have to pay more attention and I don't quite have the belly for it.
I still am short. This is the begining of a downtrend. Moved my stop to 1292 and will add more shorts tomorrow.
do you ever add shorts at night or are u looking for something on an intradaychart tomorrow. I also think we are beginning a downtrend. Volente's type of trading works well though too because there are certainly bounces even sometimes to a new high before finally turning down for good
Depends. I have added shorts at the EOD but today being the last day of January, I did not want to initiate a new position, just for my own P&L and it's easier to compute monthly records. I do not see a bounce to a new high tomorrow. It could happen but very unlikely.
I'm sorry doublea, I didn't mean tomorrow on the high, I just mean it sometimes can happen. If it were to happen in the next few days or weeks, then the subsequent down move would be even stronger in my opinion.
I think that already happened. The nasty sell-off on 1/22 and the inability of the market to follow through to the downside brought all the bulls back to the market. There was almost 30pts. move up in the last 6 days. These people will start bailing out and I think it will be sooner than later. We might take a breather at 1250 because it is a nice round number but I do not think it will hold.
Currently, we are still in an uptrend on the S&P. The weekly chart actually shows a pretty nice uptrend. The daily charts shows that the bulls are losing steam fast and diveregences are occuring in MACD, and RSI. I plan to go short soon. I just hate to fight the trend Regards, Steve
Steve, if you are looking to short on a daily position trade, I would suggest reviewing both the 60 minute charts and the 240 minute charts for entry. It would appear from the 240 minute chart that there may be some room now on the downside prior to a bounce, then if/when a bounce occurs, you may want to short there.