How markets move

Discussion in 'Trading' started by PohPoh, May 25, 2008.

  1. Bull markets grind higher.
    They generally don't explode higher. But when they correct, they tend to fall much faster than they rise.

    Exact inverse for bear markets.

    They generally don't explode lower - and when they make upside corrections, they rise much faster than they fall.

    Assume we are in a bull market - The market then proceeds to correct lower. If the market makes up it's losses in more than twice the time it takes for it to fall, then it's a bull...Based on this assumption being true (I have no backtesting to prove it), then we can prove when a market is in true trend mode...

    Bull markets that make panicky parabolic rises are the final stages of a bull market (e.g Wheat - rogue trader - Man panicks - BS blowup)

    inverse for bear markets
    Bear markets that make waterfall selloffs are in the final stages of a bear market.

    Markets need a catalyzing event to make a meaningful final parabolic rise or waterfall dump.

    This is not always the case, but I am thinking about examples like cocoa traders burning their crops or hog farmers letting loose the pigs on city hall...that's an event that can mark the end of a long, tedious trend.

    Just some random thoughts...
  2. ?......float like a butterfly, sink like an elephant. :cool:

  3. Just some Sunday morning ramblings
    Not sure if it's true
    But it makes sense to me, and it's on the internet (I put it there) so it MUST be true.

    "I am the greatest, I said that even before I knew I was."
  4. ?......confidence builds slowly, panic spreads at the speed of light. :cool:
  5. Markets climb a wall of worry
    Tumble down a slope of hope?
  6. ?.....gentlemen prefer blondes, blondes prefer bondtraders. :D
  7. bondtraders prefer asians and latinas?

  8. Most of you guys prefer red lipstick hookers and Jim Beam raw down the throat..early morning.
  9. C- kid

    C- kid

    yes but asians and latinas prefers white european and or American men

    and some turn out to be bondtraders

    many turn out to be Republicans :p :p
  10. C- kid

    C- kid

    yes I prefer this and am not ashamed of it

    the dirtier the better IMO

    they don't mind any hole, ear hole, ass hole, nostril

    use your imagination :cool:
    #10     May 25, 2008