MASSIVE short covering in stocks.

Discussion in 'Trading' started by dealer, Apr 16, 2007.

  1. March 14th was the turning point I remeber very well.

    It was a wed. The nasdaq has fallen 2.15% the day before...very bad day. On wed. the nasdaq dropped another .7% by mid day. But then around began to surge as shorts and sellers dried up. The buyers began to step in and the shorts covered in fear, further driving up the price resulting in even more short covering. The nasdaq closed up .92% that day after being down .7. A perfect double bottom and hammer bottom.
    #21     Apr 16, 2007
  2. S2007S


    true, however this market seems a bit extended. Not saying it cant move higher, im sure it will, but most international markets are just too extended right now.

    Remember Feb 27th it took only a few hours to lose months of gains.
    #22     Apr 16, 2007


    There was a divergence across the board, most major index's histogram was heading towards 0, at the very least a trader should have been flat at that time, brave ones went short. Similar histogram reverted back up to 0 warning sellers to get out of their positions. Watch histogram & you will be close to calling tops & bottoms, a footprint of a kind that lets a trader know of a possible turn coming.
    #23     Apr 16, 2007
  4. Its starting to look like a blow off top in the next month and then a real sell off. China's economy is going to collapse at some point and cause real problems for the global financial sytem.
    #24     Apr 16, 2007
  5. Mvic


    Thats what i am seeing also, though may not take as long as a month.
    #25     Apr 16, 2007
  6. thats just wishfull thinking
    #26     Apr 16, 2007
  7. S2007S


    How high do you think some of these international markets can go before they sell off. Lets talk sensible here, look at history, you dont even have to go back more than 10 years to see what happened to the Nasdaq after its great run to 5000. I dont see a single person yelling SELL SELL SELL, it will be after the fact that these markets are off 5% or 10% that they will come out and say you should have seen this coming. Its going to happen. After that every single day cnbc will have a pathetic discussion on where the markets are headed, they will post alerts every hour on where and when the asian markets will open at.

    Why sell during the big drop, why not sell now, hold onto cash and buy when everyones selling.
    #27     Apr 16, 2007
  8. If you think the markets are due for a big correction soon put your money where your mouth is and buy puts and stuff. Let us know when you do.
    #28     Apr 16, 2007
  9. *yawn* I wonder how many of you even manage to make money - you were probably the same ones in 2003 who huddled around the fire going 'market's going to drop anyday now! 100% cash for the next 5yrs!'
    #29     Apr 16, 2007
  10. If I am not mistaken, you were incredibly BEARISH coming off the most recent lows in mid-March and posting several times per day ( since that low ) that NO CORRECTION is over in a week.

    And here we are . . . over 100 handles higher!
    #30     Apr 16, 2007