there will be no liquidity today, i don't think. they have to expire the calls down here. develop what? no one is looking for a bottom here, and thats why it's the bottom. almost everyone i've talked to over the last few days is very skeptical about it. I'm going home over the weekend long and holding for weeks. How can you say risk reward is terrible? Buying on lows isn't risky, SHORTING ON LOWS IS RISKY. Follow the big money, they sell into rallies and buy into selloffs. Only Mr. Market will seperate the wheat from the chaff, and he'll do it on his own time.
Would you rather short a new high or a new low? The trend is down. In a down trend, i sell rallies and buy back on the weakness. In an up trend I buy weakness and sell into the strength. This is a down trend. If you wish to rationalize what will happen, go for it. I only look at what IS happening.
so, my question was : what are the argument, the reasons , in favour of a next up-trend for you. because what i see is a down trend, a big down trend, and nothing else.
Fundamentally, all trading is trend following, so why bother predicting the market. Investing is dead.
Lundy, Trading has nothing to do with tops and bottoms ... they only serve to identify a trend and trade in its direction ... u buy when u get a buy signal ... u sell when u get a sell signal ... and the tools used to get those signal vary from trader to trader ... I think several people in this thread have been asking u what your tools are in pre-assuming a bottom in place ? P.S. As I write those lines indices are hitting new lows ... enjoy your longs guys ...