What Happens When Short Covering Rallies End ?

Discussion in 'Trading' started by GrandSupercycle, Jul 8, 2011.

  1. Anyone know what happens when the covering ends ?
    :D
     
  2. Lucrum

    Lucrum

    The fed loans out more free money and it keeps going up?
     
  3. The regular rally begins, so we can't expect up 1% days, only up 0.8% days.
     
  4. Tsing Tao

    Tsing Tao

    I suppose at that time you'll post another blog entry about how it's all about to come crashing down again?
     
  5. You all now have the answer ...
    :p

    (hopefully nine_ender will also understand)
     
  6. The answer is that it is a buying opportunity right?
     
  7. The answer is that it is a buying opportunity right?
     
  8. [​IMG]
     
  9. Its a potential opportunity for dumbasses like GrandStuperCycle to cut their losses after they heavily shorted at 1260 looking for a correction. Second time this year he's called for a major correction around the 1250-1260 area.

    I suspect though he's holding and hoping for 1150, which means if at any time in the next year the market rallies he needs massive margin to hold the trade. In reality, what I REALLY suspect is he doesn't trade, because his ideas are pretty much impractical with real money. Almost nobody can short SPY, let it run against them 7-15%, and make renewed claims to short some more their losing trade on the way up almost every single week.

    We've been range bound all year. Anybody claiming a 7% move up of the entire market over two weeks was "short covering" needs to get their head examined.
     
  10. Tsing Tao

    Tsing Tao

    #10     Jul 8, 2011