Taking it overnight

Discussion in 'Strategy Building' started by BlackMonday, Apr 29, 2005.

  1. First time I am taking something overnight in a while. The stronger the close on a Friday, the more likely it is to gap up. I think it is some kind of 85% probabilitic event. Right, Right??
  2. I changed my mind. Looks so overbought, and don't have enough balls to do it. :(
  3. Anseld


    actually, it's more like the opposite.

    the stronger the rally towards the close, the bigger the profit-taking sell-off.

    we're not in a bull market.
  4. yenzen


    yes, good observation. Besides, all I've been seeing since the April expiration are dip buying bulls all bulled up every day, day after day, and they consider every rally as THE rally. Granted its no easier for the bears each day either, but I firmly believe this is the type of action u see just before the macro trend change as the old habits that persisted in the previous phase are gradually punished over time and change the sentiment, structure and behavior of the "herd"

    Senor Zen
  5. wyang

    wyang Guest

    The opposite is true. All statistics suggests the risk/reward ratio of carrying overnigt is higher than average.