Im thinking about going short on INTC ...

Discussion in 'Stocks' started by Jumpshot, Jul 14, 2009.

  1. Jumpshot


    Gap ups like this one usually do not last and real traders usually sell into them. It goes like this Day 1 of gap up HOLD, Day 2 SELL/SHORT. Wait 2 weeks, cover...thats the usual routine.
  2. I don't know how long you've been trading.
    But that's not 'any' kind of typical response.
    In fact, that kind of behavior (multiple gap ups on perceived good earnings in bad environment) was what started the ascent off the 03 bottom. Many shorts were annihilated on the way up as it was fast and furious.

    Post some detailed sample statistics or back-tests before making such assertions.
  3. Agreed.
    But after all, this IS Elitetrader!!!
  4. Jumpshot


    OK. Page 852 Encyclopedia of Chart Patterns, 2nd Edition. Author used tens of thousands of chart patterns to come to this analysis. Author is a known, famous retail trader unlike yourself.

    "Sell the day after the initial rise. Buy back in during week 2 for a rise that lasts through week 4."

  5. PLEASE tell me you don't trade based on what books say!?!?

  6. Jumpshot


    All the time brother...I look at both the successes and failures of known successful traders and trade accordingly.

    The lesson here in this book is that most gap ups of at least 5% or more can usually be faded within 24-48 hours. Thats been my experience.

    If you are looking for trading advice from this site, then I suggest you hit the public library and dive into a good book from a successful retail trader...maybe a little reading would be good for you.

  7. Good Luck with that.


    You might wish to cross-check your methodology with the Bible of Technical Analysis . . . Magee & Edwards. $134.00 new
  8. Most being what %? Also, how FAR does it go, how much do you give it against you etc etc etc.

    The point I was trying to make, in a joking way, was that books can give you concepts or ideas but the practice of trading is one that can ONLY be gained fully by trading the market oneself. Unless you have definite criteria to answer these questions about fading gaps, you'll most likely find yourself lost in that trade. A fade retrace can be 1 pt, 6 pts, 2 ticks an entire gap fill and the list goes on and on.

    Does your book handle all these in order to actually profit or minimize damage in case the book is wrong?

  9. NoDoji


    So like, say, short GMCR on 5/1 and wait 2 weeks, or short DDRX on 4/22 and wait 2 weeks, or short ADY on 5/18 and wait 2 weeks, or short STEC on 5/13 and wait 2 weeks, or... oh never mind that's what stops are for and real traders always honor their stops before honoring the "wait 2 weeks" rule.
  10. INTC is a shit stock and PC makers are basically surviving on low margin netbooks and peripherals in TSE (this shitty economy).

    wtf has ever made serious money with stocks like MSFT or INTC?
    #10     Jul 14, 2009