Thoughts? I'm assuming you currently don't have a position in any S&P trading vehicle and want confirmations from other people of your beliefs of selling the market here. First off, there are many other questions you have to ask yourself. What time frame do you plan on trading? How much will you risk on the trade? What conditions have to be met for you to sell or cover your trade? Are you going to switch from short to long or vice versa when your trade signal that you create goes through? I'm not saying whether it is right or wrong to sell the market here, just pointing out that it all depends on how you plan on consistently trading the S&P system you use. If you don't post more info on how you actually trade the S&P, it's hard to give any useful thoughts about what you should do. One person's system may be on a sell and another's may be on a buy and they could both be profitable strategies at the same time. That's my thoughts!
For now this remains a short waiting to happen. Unless the following happens: 1) We break 1400 on impressive volume 2) 1400 transitions from Resistance to Support 3) Any subsequent pullbacks are on low voume 4) Tentative highs on increasing volume Susana
chrystal ball rorshach test tea leaves star charts cloud patterns voodoo what do YOU see? chart reading skills required.
the correct answer? picture of what happened in the last bear market attached. you look at the chart you form an opinion
Actually, I posted the chart to get traders opinions, which, happily, I have gotten! The open positions I hold at the moment is long GOOG from a month ago - I sold all my other longs Friday and shorted very small positions of RIMM, AAPL and XLF Friday. My other holdings are short CNW and CALM from Wednesday. My time frame varies. I try to hold for the swing - longer if I can hold, but often am in and out in less than one day. I will not hesitate to close a position for a small gain or small loss- with me, it all depends on how good of an entry I got. The better my entry, the longer I try to hold. I am all about preserving capital and taking profits when offered. I have zero bias and will go long or short without the slightest bias......this is something that was EXTREMELY difficult for me to overcome - notice I said "was". At these levels, any entry on the short side is gonna be a good entry - JMHO! ! ! If wrong and market takes off, I would close short with minimal loss.......if we head back down, a week from now entry would probably be considered phenomenal. At the moment, I am happy with my current holdings but overall, I am neutral and happy to take a "wait and see" position. Just would hate to see this as a bull trap if we tank from these resistance levels.
Most intelligent thing posted here in awhile! Nice. You actually sound more like a day trader. Personally, this latest rally has just set up the markets for another decline. But, i am the same as you, I go with whoever is in control at the time. I see 1402.50 as pretty severe. I expect a new low before all is settled out. Earnings expectations were so dreadful that this latest rally had to happen. But since my actual trading time frame is about 15 minutes, you might want to take my long term thoughts with a grain of salt!