Ahh, well I went long with some SKF as well... got it around 100. We will see how it works out. Should have held off until the close atleast. Already in the hole quite a bit. What do you guys think, will it come back up? For the record I don't have a large sum of cash in this, just something I can afford to take a chance with.
Ouch....that's gotta suck losing 28% in one day. Good example of why not to trade your bias versus trading what the market's telling you. Each move down today (talking ES here) had no legs and no momentum. Just luring in some top-pickers - I know because I was in that group a couple of times. But when the shorts took forever to get anywhere, I got out, and the longs more than took care of those losses on the shorts.
It WILL come back this week. But if I were you I would do the opposite - I would buy UYG and DUG - meaning being long financials and short energy. It works very well so far and I think that energy complex will lead this next led down. Just for those willing to shout "which leg down? Buy-buy-buy" - next leg down coming this week.
how does being "long financials" and "short energy" make it a good strategy? how do these two sectors even have anything to do with each other ?
My condolescences on the long SKF 100. (And FAZ at 26.) The broad market S&P and financial was in a screaming short squeeze in the last hour. Why take the chance? If nothing else you could pick that up at a lower price. I wouldn't (and didn't) stand in front of a freight train. Will SKF go back to 100? May be. Or it may take a while. The market is always IS. Trade the reality, not what you hope. 100 was a long-term support for SKF (for a few months). Now that is broken, it suggests 100 may turn into a resistance.
you guys dont get it..down 50 up 80, down 100 up 150 , down 122 up 500!!!..its a freaking uptrend!!!!!!!!! i am waiting till it tells me its coming down to short or buy skf..
Easily... Just look at the chart of XLE:XLF As for your second question - sectors bottom out one by one. If 666 was an intermediate bottom then the next leg down should not be led by financials. In the other hand oil just reached it's intermediate top - so I think this leg down would be led by energy sector - the less hated one
So many of you argued that Skf had such strong "support" at $100.... whatever support means because technical analysis is irrelevant to most ETFS... indexes (DIA, SPY) are somewhat different. Think of SKF as a derivative and look at its underlyings for actual support/resistance levels if you wish to apply technical analysis. Essentially it moves inversely to the S&P futures, so applying oscillators or whatnot is more important to the underlyings (financial stocks) than to SKF. Furthermore, how relevant is technical analysis today on a day trade or short swing trade when the market is recently all news driven? We rallied because of the toxic asset news... I suppose oscillators can measure the strength of the move, but technical analysis is less significant on the short-term.
Agree. I have never ever traded SKF, FAS or anything leveraged looking at actual charts of those. I'm looking as XLE, XLF and SPY