may get really ugly for longs today

Discussion in 'Chit Chat' started by shortie, Feb 17, 2009.

  1. somebody please tell me if i am missing something with my crude analysis.

    1. we gapped down hard overnight
    2. this gap is too juicy not to fade so many traders went long at the open
    3. the gap did not budged in the morning (in fact there was some selling) so many longs are trapped
    4. if the market start moving lower, there will be a snowball effect of longs trying to bail out
    5. as a result the market can drop several pcts (approaching the Nov low)
    6. trading plan for the day: sell any rally attempt
  2. lol but thats too obvious :p