Is there a justification for being short?

Discussion in 'Trading' started by areyoukidding?, Jul 28, 2005.

  1. Today's close above the 1238.36 level in the SPX should now target 1253.00

    Notice that the 10 day MA on the SPX has held all of the lows for the past 7-8 days, with the last two days showing a classic "lift-off" out of the consolidation from last last week into early this week. Tomorrow's action could very well be explosive.
    If not, it tells you something.
    Tomorrow is key.

    "The Trend is Your Friend"

    :)
     
    #31     Jul 28, 2005
  2. 7-8 days oh my, all I see is a massive MACD divergence in the weekly charts, just like 99-2000.
     
    #32     Jul 28, 2005
  3. EOM tomorrow...make em pretty.
     
    #33     Jul 28, 2005
  4. ===================

    Areyoukidding;
    I am not kidding.

    Had actually planned on selling some longs in one sector and ;
    going long some puts, but the window was too narrow or
    ''short'' so to speak, so i didnt try . Some faster traders probably pulled it off today.

    Something i dont love but its part of it;
    may have to use a market order to get out of countertrend.

    So to answer your question, yes and like an occasional countertrend;
    but love to call it like it is,
    longs have the % now .:cool:
     
    #34     Jul 28, 2005
  5. serg007

    serg007

    In my opinion yes there is such a justification for being short. It is well seen on the attached chart (look at vertical red lines). The reasons for setup are described on the chart. Extreme low in -DI only reinforces this idea.
    But this is only setup. Sell trigger would come on new lower low. It is the matter of time- either next week or during August. Personally, I have stop-limit order to sell QQQQ short at 39,15 GTC with stop-loss above the last high. If the new higher low would be established and then new higher high, the order would be moved there.


    http://tinyurl.com/9qglq [/B][/QUOTE]
     
    #35     Jul 28, 2005
  6. wabrew

    wabrew

    Another way to short the QQQQ, but this one can be done in an IRA and this one gives you 200 % leverage -- yes it is true, since it is a MF you can buy it in an IRA.

    RYVNX - the rydex venture 100 - is an inverse Nasdaq 100 fund.

    But, if you use it and are wrong it really hurts fast. Tou will probably look like one of the guys in the attached picture.
     
    #36     Jul 28, 2005
  7. Mvic

    Mvic

    Anyone notice the similarities between volume at the bottom in 02 and volume now. Blow off volume at bottom, now at top? If so, then we will probably have a drammatic rally, clear out all the shorts who are thinking August is the month, and dump in Sept and Oct.
     
    #37     Jul 28, 2005
  8. could u clarify where you see the blowoff volume?
     
    #38     Jul 28, 2005
  9. Mvic

    Mvic

    Look at any long term SP chart, its is pretty clear volume was peaking fall of 02 and peaking at same levels again.
     
    #39     Jul 28, 2005
  10. hajimow

    hajimow

    You are asking the reasons to go short and it reminds me of the movie called I think " The great dictator" by Charlie Caplin. In the movie Hitler (Charlie) was in a room and a typist was typing what he was saying. Hitler was shouting angrily and talked for two minutes and the typist just punched one key !!! and then he continued to talk and just said one word and then typist started to type very fast for 2 minutes.!!!!!!

    Now the moral of the story: you might not see any reasonable reaction to the bad news in the market that might surprise you but soon you will see negative reaction to good news that is actually were delayed reaction to the past bad news. Be ready.
     
    #40     Jul 28, 2005