Bears feed off rallies. Rallies are food for bear markets. Pump and dump. Lure in unsuspecting folks as long as you can till the pond runs dry. There are rallies instigated by buying futures en masses before the bell and having a nice 100-point plus morning greeter for America. But behind those good morning rallies are well-hidden pinstriped cockroaches of Wall Street already gaming a kill. Itâs like big game hunting. You go prepared, and when the poor animal walks into a thirsty corner at the river bed, your well oiled rifle deposits a lethal dose in its innocent body, and he crumples right at the water and dying without it. The Mechanics are simple. Futures are bought in droves thereby jacking up SPX and DJIA and COMP and other indices at the open. When the retail investors see markets logging 100 plus points they starting fueling the fire buying in droves placing orders right and left. This goes on for 2-3 hours and the DJIA hits 150 points around noon. Then the institutional game hunters (who also issue upgrades and downgrades to facilitate their own trading days when they feel like it ) move in and sell some stocks. This jolts the market say 30- 50 points and looks like a nice pullback that you want to see. Is that a real pull back? Ask yourself. At that point investors, day traders, various other jackasses who flog the markets get excited. Things look pretty cheap and reasonable and appealing and mouths start watering. They start buying the markets registering another 20-30 points to the indexes. At this time institutional sellers have unloaded 20-30% of their daily ammo into the grazing animals in the background. Some losses occur but nothing serious, it looks like a nice pullback, and a second chance to board the gravy train. Than comes the final hour. The hour of ultimate truth, and all of sudden the whole floor beneath your feet starts to crumble. All the indexes start registering sudden losses. Stock charts on the screen start showing 5 red candles against one bullish salami if you can find any. Bollinger bands get tagged severely to the downsides minute after minute in relentless selling waves. Things start getting ugly. Dojis, stars and hammers start appearing on your screen. The hunters go in for the kill mode right around 3.15 PM and the final barrage of ammo is discharged in a brazen shameless orgy. You feel like a fool having bought at the top, and sitting on an island reversal puking your guts and hoping never to trade again. You feel taken in and violated, and fooled. Lots of questions go in your mind, you feel like there is something wrong with you, you got to be a better trader. But the reality dictates other things, you have no choice at that point but either to liquidate and take losses, or hang there in this selling orgy. Neither decision looks good to you and you may capitulate in the end, registering another loss of account value right away. If you somehow manage to hang in there against your rational will and senses, when it all gets dark and red on your screen, and the VIX shooting up, you sometime do well and live for another day. That my friend is the trading corner piece of todayâs Wall Street in America. These perma-bears are waiting for one more rally, one, and one more scalp, one more day aiding institutional and quant traders at big brokerage houses, hedgefunds and various ghouls and parasites who trade for a living, who have orders to trade down for the day. Their motives are to undo into someone and wipe him or her clean. But these perma bears donât make much money, few nickels here and few there but they help well positioned institutional sharks who walk away with millions at the end of the day, while you roast in the agony of defeat. So if you are just joining in and not experienced enough, these days always suspect an early morning rally. It usually is bad news for you. Stay out of it and donât become a pigeon whose ass feathers are about to being expelled into oblivion with a well-placed rifle shot. Unless the overall market is in a rally mode as defined by Investors Business daily market analysis available for free, be extremely careful. If you need to trade, scalp and get out before perma-bears and shorts obliterate your profits. If you do get caught stay in it for the long haul. Eventually there will be another rally because technically and fundamentally sound stocks do not go down to zero in a straight line and these bears need rallies to survive, otherwise there will be nothing left to sell.
I am confused and pardon my ignorance Are you talking to yourself? I mean, if you're trying to give advice to the whole community, this is a wrong place to be. I am not trying to dismiss or even challenge your views. If you want to be a perma bull and that makes you happy, be my guest. I mean who knows? maybe you're a trillionarie sitting in a pile of cash willing to withstand a 300 points dow move in 1 day. But in case you haven't notice, the vast majority of people hanging on forums like this, couldn't care less about the bias of the market. I feel sorry for you. Every time you post something like this, almost everyone here is making a feast off your ass. Man , don't you think is time to stop?? I know there's plenty of dumb-ass donkeys here that have nothing better to do other than beat each other to death even with the most cynical and stupid arguments...but again, this is a trader's site and they're in a very wide range...assholes (including myself of course) You mentioned once that you're option strategist, so why don't shed a light on us and talk about that subject for a change?? Don't mean to know how you do it but maybe there's something in there that will spark us into look for more. Again, not to be conflictive by all means Cheers
Sure, got your rifle and scope ready for tomorrow? Who would you slay? Little old lady with a small pension fund? You are not powerful enough to take me down punk! I will jam things down your throat.
I am talking to you! If I was why would I post here the kind of things that go on these days? Scalp here, scalp there picking up nickles and dimes daytrading to poor house. Take your profits and have enough to put gas in your 1969 buick electra ?
For serial scalpers getting by for 0.05 cents and .10 cents and maybe .20 cents is a great achievement isn't it? Stoking fears of recession? Bad mouthing things in this country? Than dumpster diving for scalps when you get up? Nice life dude, go tank in a sewer pond..