Is today a shorting opportunity - sell the news?!

Discussion in 'Trading' started by iceman1, Oct 27, 2011.

  1. I am actually looking to enter some shorts... although I am going to hedge, and keep some longs.

    I can't just plunge in... gotta wait until the markets resolve, and short covering is over. Figure we close higher. Also, have been saying you cannot short the market in Q4... so any short is against my own upward bias.

    But I loaded monies into mutual funds around first of October from cash, and figure this is a way to cover any sell-off of this "good" news. Is this actually good news? It gives more "certainty" to markets and that is always a good enough excuse to buy.

    Buying NDX puts today and will leg into a spread if we get resolution of gap opening. Also shorting ES futures... when I don't know, will wait and see what the market says, and what large players are doing.

    Think the r/r is better no; might be wrong.

    Can always reverse and go long.

    Anyone else?
  2. Tsing Tao

    Tsing Tao

    If you have the desire to stand in front of a steaming locomotive, be my guest. Me, I would prefer to get more evidence of a possible shorting op before I leap into the pool of sharks.

  3. ??--doesn't make sense. Just pare your position down to what you want as net short.
  4. That's where the GREAT trades are made... we all know this. (And just for the heck of it, I'll remind the weak minds as to to the REAL definition of "resistance"... the price at which sellers overwhelm buyers... IN SPITE OF POSITIVE FUNDAMENTALS AND MOMENTUM.)

    If this turns out to be a "gap-n-crap", "sell the news" might end up being the real deal.

    Anyone who plays it, however, should be ready to protect capital with stop. Should fading this gap turn out to be correct, anyone who played it should be toasted...for their brain as well as their balls.
  5. Definite short. No locomotive here, just a capitulation of sellers. New lows in a week or two.

    SPY 127 XLF 13.75
  6. Tsing Tao

    Tsing Tao

    Yes, and it's also where people are destroyed.
  7. Nobody is destroyed unless he does it to himself. STOPS, DAMNIT!

    There are chart "indications" to play this short for the aggressive trader. Doesn't mean doing so is correct, just a logical play. (In strong-up markets, lots of "sell reasons" get taken out... but not all of them.)
  8. There are chart "indications" to play this short for the aggressive trader.


    I see zero TA saying go short.

    In fact TA is screaming go long. Sure, if you want to play a small pull back before this fucking thing launches.....jump in front of that train.

    All my indicators to go short, including gut....have been washed out.

    Unless some "BLACK SWAN" event happens now....the Puppet Masters will fool the lemmings into going long. In the end...they will be dust. (The long term investors) But bar any Shocking News....12500 or even 13000 on its way before end of Year IMHO.

    But I will not get long. I will wait again, to short when I see a serious sell off, a signal to trend reversal.

    Meanwhile, I'll close more deals before the end of the year so I can bet heavy on a sell off without the fear of the loss of my bet.

    I have finally learned to swing trade with money that you can afford to loose without causing you to go to McDonalds for dinner.

    It's a line I use with my clients about investing in Risky ventures...I now take my own advice....
  9. GordonTheGekko

    GordonTheGekko Guest

    IMO don't move on the headlines means don't move on the headlines
  10. Bob111


    today gap and crap worked well for me :p
    #10     Oct 27, 2011