the analogy to late 2007 is a good one. i've never been so confused in my career as watching new highs n the face of all that was going on. this is getting the same feel. i am really hoping for GS blow out, huge rally early that fizzles to a very poor close. that would be akin to ringing the bell. of course, all depends whether the fix stays in. i am convinced that this move has been orchestrated, globally by the governments teamed with GS and the like- free $ to recapitalize/'save' the world from depression/meltdown. not so sure the have any cards left up their sleeve to save us from the unintended consequences (unless debasing the $ WAS part of the plan...)
No, no. Type 1. Entirely nuts. Parenthetically, the ref to the behavior of late 2007 is not really apt: I've said it before and I'll say it again, this is fall 1982/spring 1983 behavior. NOT a political judgement;strictly market behavior. When the news gets good on the employment front, the market will go down for sure, on worries that the Fed will finally take action. Same thing happened in 1983. Until there's a blazing good employment report, ain't nuthin' but blue sky.
BTW, also not a judgment on AM4's (or whatever that handle is; too weird for me) trading skill. A good trader can make money on anything, and I've read enough to know that while he ain't perfect, he's pretty good. Regardless of what happens, I expect he'll make some coin out of it one way or the other. I am curious to see exactly how, of course...
The Gift that keeps on giving...and giving and giving and giving... If the aircraft mechanic was happy before, he must be really lovin it now!
The questions to ask are: What time frame are you trading? Are you buying at this level (1080's-1090's)? If playing a time frame that looks for larger swings than intraday, and you believe the market is a bit overbought at these levels and want to take advantage of the pullback to the short side, then you begin scaling in, looking to build a position at an average price that will provide you with a tidy profit. If you're long, would you add to your long position right now @ 1088? If not, why not? Are you waiting for a pullback because you're a value investor, looking to add at the trend line? This is the gift that AMT alerted us to with this thread. It's a high probability play for swing traders looking to take advantage of the ride back to the trend line, and if the trend line breaks, then you've the added advantage of having entered near the top.
After much reflection and meditation I have to agree that it is Type 1 mainly because of two reasons: 1-The lack of liquidity 2-The need to "build" a position. For a few hours I was confused with Type 7 however, because I believed the ES to be quite liquid. Apparently it is not liquid enough for some. Trading is hard shit, unless you are on an only boiled white rice diet. When is the next grab?.
smells like it in this pre market southerely grind, when its tough to hold ya know your in the right boat .