Any prediction where the markets are going in the short-term? Looks like resistance at 1145-1150 (SPX).
Here's a strategy for determining where the overbought US market will go: Short ES and place a worst-case scenario stop. The price where you place the stop is where the market will go.
This is another price bubble in-the-making--without any fundementals to support it. When the correction happens-as it surely will-there will be tremendous opportunities on the short side. As to when this will happen? Who knows? What is astonishing to me is the degree to which the mkt disregards bad economic news. Irrational exuberance de'ja'vu'?
and then to add.. once you are taken out.. then ES will plummet . and you will wish you could have kept a higher STOP.. and rinse /wash/repeat... this cycle goes on and on till the end of mankind!
Yes, exactly! I can see you're a very experienced trader! The solution is to USE NO STOPS. STOPS CAUSE LOSSES.
The post at the top of this page is an example of how well this hypothesis works: http://www.elitetrader.com/vb/showthread.php?s=&threadid=64965&perpage=10&pagenumber=7980 :eek: