Fools??? With all due respect, the market did in fact "retest" the previous lows of the end of February and "bounced" very strongly, now trading back up to SPX 1395. The "no correction ends in 2 weeks" proclamation is certainly one that can prevent you from making any serious money, trading. Last time I checked, the SPX has rallied 30 handles up from the most recent low. If you were frozen like a "Deer Caught in Headlights" during this "bounce" because you completely ignored ( or did not understand ) the impact of the upcoming "Triple Witch" I would say that you have no real business being a trader. This is a trading market, plain and simple. It continually amazes me that people on these boards fail to realize this, and consistently come out with all sorts of bold claims and predictions, more often than not based on VERY LIMITED MARKET EXPERIENCE or HISTORY, which then "freezes" them from being flexible enough to accurately perceive what is going on, and TRADE off of it. Duration and Magnitude of moves in the stockmarket have become ever so "compressed" with the likes of basket-trading and electronic markets. To think that "collars" getting triggered on the downside and hedges being unwound ahead of "Triple Witch" had nothing to do with the move in the market this week, is to be just plain naive. It also doesn't even begin to address what this has to do with a cookie-cutter stereotypical opinion about how "no correction lasts 2 weeks." You can keep telling yourself that "no correction ends in 2 weeks" but in doing so you certainly run the risk of missing out on HUGE moves and MAKING $$$!
are you serious, Last week I would say about 75% thought that Feb 27th drop was the bottom and that the correction was over. Then just 2 days ago the market drops over 240 points. Yesterday it drops below 12,000 and did rally back however did you see how pathetic the volume was. You probably think the market only runs in one direction, "UP".
First off, I would highly disagree with your assertion that 75% of the traders out there thought that Feb. 27th was the BOTTOM of this market. After the market "break" of Feb. 27th and four more days of downside trading, the market went thru a very typical "counter-trend" bounce after enough fear and enough of an oversold situation occurred to give rise to a "bounce". These counter-trend rallies usually last anywhere from 3-5 days, and sometimes as many as 8 before they "break" again to the downside. This is nothing new. Go back over your market history and you will see that this is quite typical. As far as volume is concerned, the last time I checked . . . my clearing firm and broker paid me based on PRICE and not Volume. Trading volume is a fool's game. Price is the only thing that matters. Forget about what you believe to be what MOST people say or think. It's all about YOU pulling the trigger and testing the market to see if you are RIGHT or WRONG about your opinion and whether or not you are seeing things clearly, instead of RATIONALIZING why you are not reacting or capitalizing off of the market's volatility. Find a few technical indicators that you are confident with, and stick to them. Keep it simple. You sound as though you are looking at too many things, and as a result, you find yourself afraid to pull the trigger because you are spending far too much time RATIONALIZING price movement or basing your decision making process off of FALSE assumptions.
Agreed. I just thought that I would try and educate a young trader in a positive manner. Enough said.
-------------------------------------------------------------------------------- Quote from saxon22: This thing is unpredictable, i was afraid to fart, much less leave for the bathroom. -------------------------------------------------------------------------------- Just split the difference and Shart!