Discussion in 'Trading' started by rowenwood, Feb 4, 2004.
predicting and betting on since early january is finally coming to fruition.
Exactly... first it looks like a nice lil pullback... then the market shows u its true colors.
I've been building quite a big short weeks ago in the IWM and unloaded most of it in the selling.
I would only re-enter short again if the market has a feeble bounce of the lows.
for biotech stocks such as the non profitable variety such as crxa which closed today at 5.97?
And what are the predicatable bottoms of this short term short makert? I hope it doesn't last more than two weeks. What does the historical febraury down month tell us about the movement of the down-trend. For example, will it intially drop a little then sharply, and then recovery mostly by the end of febraury? In this bull market we may even see a slight gain for the month of february.
I am not sure what people on this thread are basing their "short positions" on since no one here is sharing their methodology.
One would think that a trader would have downside targets in mind ahead of time, instead of simply stating that they are covering their shorts by "covering into the selling" as one person(Trend Fader ) mentioned earlier in this thread.
For example, why would anyone cover an IWM Russell-2000 short position on a day in which the index was down 2.5% and making new lows for the move???
Seems pretty arbitrary to me.
I was long and short today. Wonder what tommorrow will bring?
I'm sure many are looking at the 50-day MA for most of the major indices as a first target, and we've pretty much hit that spot today. But as for the above question, if I wanted to enter long into this market, a down 2.5% move after several days of selling off would be a pretty good place to start buying.
It is arbitary, but unfortunately I was one of them. :eek: One reason for me is that I don't want to have a position for the coming holiday, so I am just parring down. Closed about 20%.
if I wanted to enter long into this market, a down 2.5% move after several days of selling off would be a pretty good place to start buying.
2.5% from the top I presume. Which means
The 2.5% was in regards to the Russell.
wouldn't it be a fitting correction for the above said indexes?
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