putting the rally in perspective

Discussion in 'Trading' started by Warrior4g, Mar 12, 2008.

  1. just ranting but an interesting tidbit for some of the newer traders. the nasdaq's strongest days were during the 2000-2002 bear market. these rallies make people feel good and suck them in as wall street decares a bottom;it rarely is. be careful and do not hold long positions thinking the bottom was made yesterday.
     
  2. Relief rallies are sharp and quick; so, I agree with the opening statement. If I were fortunate enough to have been long on Tuesday, I would have reached my target and profited. In a bear market, when I enter a trade going against the trend, I keep it in for one day, and close it out EOD, no matter what. I think that once 1400 is broken, then we can believe that the major trend is upward again. Some are suggesting 1345 as a pivot, even the range of 1345 to 1390.