Market is overbought

Discussion in 'Trading' started by vince111, May 14, 2008.

  1. Vince111,

    What indicators are you using to quantify "overbought?"

    BA
     
    #11     May 14, 2008
  2. Do you have a stop on the TWM position? Although unlikely, one should never rule out the possibility of the market turning up and not looking back for a long while when shorting. You could be sitting on a losing position for years in the worst case.

    All this media mumbo jumbo 'the consumer is sucking wind' (retail stocks are in the middle of a four year 20% wide trading range) or 'Oil will bring the transportation side of the economy to a paralysis' (transports are 2% from all time highs) sounds all so great and logical, just unfortunately we have to trade actual stock prices, not fantasy.
     
    #12     May 14, 2008
  3. Very well said.

    But for some reason, people like S2007S seem to think that there is a direct correlation between what is going on in the Economy, and stock prices.
     
    #13     May 14, 2008
  4. S2007S

    S2007S


    No stop in, I have put stops in with these proshare ETFS before only to lose money since they are very quick to move 5-10 dollars in a week in some cases. So no I do not have a stop in.
     
    #14     May 14, 2008
  5. ha ha ha wrong again

    The bull market that began in October 2002 will last for decades. We're still in the new era of globalism, web 2.0, spendism, consumerism, and hyper capitalism. Jobs will be outsourced and insourced which is good for multinationals, dollar will keep falling, and food and oil prices will keep going up. More credit card debt and more consumer spending, which is why you buy MA and V.

    You can't tell me there is a recession or a credit crunch when I don't see it. You can't tell me there are problems when I can't see them. Millions of people are logging into Facebook and myspace everyday.

    Facebook is worth $30 billion dollars. There is no web 2.0 bubble. No recession except an imaginary media generated one. No negative GDP quarters, tons of huge overseas growth. McCain is out next president.

    Don't be a loser. Now is the time to buy stocks, especially the stuff I recommend like AAPL GOOG BIDU FSLR and other stocks like that.

    Dow 15,000 end of year at least

    I know 'almost' everything

    -werd-
     
    #15     May 14, 2008
  6. S2007S

    S2007S

    Bull market lasting for DECADES, HA....

    face book worth $30B, maybe $300 million, not 30B, Never will it be worth that.....

    Dow 15k, maybe, but didnt you say the same thing in mid 2007. Dont see any catalyst for 15k, sorry.
     
    #16     May 14, 2008
  7. Another "rookie" mistake.

    You should write a book on how NOT to TRADE.
     
    #17     May 14, 2008
  8. MAESTRO

    MAESTRO

    I am selling June 1 STD OTM calls. I think that we will see a major pull back. I am just looking on put/call ratio and VIX. Also ask/bid sizes are drying up. It is not by any means a recommendation. It is just my personal opinion. Of course, I could be wrong.
     
    #18     May 14, 2008
  9. I believe in significant pullback starting somewhere here - sure prior 1450 on ES.
    However Maestro what do you think is major pullback? 100 ES points? 150? 200? 250? I believe you have opinion.
     
    #19     May 14, 2008
  10. MAESTRO

    MAESTRO

    I do not usually guess about the size of the move. But 50 – 70 points, may be 100 on S&P looks pretty reasonable.
     
    #20     May 14, 2008