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Registered User
Joined: 12/2/2004
Posts: 1,775
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Not cause I really wanted to be all cash, but because all three of my positions (all shorts) stopped out yesterday and today. Seeing a lot of longs I like take off without me but I got caught leaning wrong way, won't chase, just not any good low risk entries for longs imo, at least on my watchlist. I have to wonder if we might witness a major whipsaw very, very soon. You just know a whole lot of today's action was short covering...right? With the "smart" money using the opp to unload to retail? I'm simply out of tune with no edge at the moment. How about you?
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Registered User
Joined: 1/12/2009
Posts: 235
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I'm 100% cash presently. This market is just too volatile unless you are a day trader. Perhaps with the Fall season approaching we may begin to see more volume come back into the Indicies. Then again, we may continue this sidewards pattern for awhile longer.
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Registered User
Joined: 2/21/2007
Posts: 797
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trade forex it's easier
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Registered User
Joined: 1/28/2005
Posts: 6,049
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"just not any good low risk entries for longs"
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Yesterdays SP500 low was 1 point off the low hit in this downturn
seems like there should be many?
(do you have special methods that attempt to exploit this type environment)
"With the "smart" money using the opp to unload to retail?"
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I really don't like the term "smart money" but if we do go down that
road we could also say that smart money is leaving bonds and will go into equities.
" I'm simply out of tune with no edge at the moment."
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Well is it out of tune or that the market is just not giving?
The real question would be are you trying to exploit the situation
or just trading "normally".
"How about you?"
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When in doubt smaller positions. (or less of them)
I also like to up-end the risk/reward profile.
You'd be surprised how well a 1 to 2 works.
Allows you more opportunity to take the money and run.
Thanks
diceman
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Registered User
Joined: 7/1/2008
Posts: 889
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I have been buying weakness and selling strength in this market in my trading account. For example, buying IBM around $122 is like pulling money out of an ATM machine. I've been in relative strength ETF winners such as VWO, ECH, EWM. Buying breakouts has not been working as well, playing trading ranges and support levels has been gold.
In this environment I'd rather make a big bet on a solid blue chip like IBM than a small bet on a more volatile smallcap.
But perhaps it may be time to shift into breakouts. Market sentiment has been destroyed so badly that this could be a real bottom in place.
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Registered User
Joined: 1/28/2005
Posts: 6,049
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"In this environment I'd rather make a big bet on a solid blue chip like IBM than a small bet on a more volatile smallcap."
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I was thinking more along the lines of buyng 5 or 6 instead of 10.
(thats what I mean by smaller position)
Thanks
diceman
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Registered User
Joined: 12/2/2004
Posts: 1,775
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Good comments Diceman. As for low risk entries hard to find, was referring to ones at very top of my long watchlist, VHC good example. I missed buying it's price/volume thrust Friday, and so had alert at 7.10 for hopeful pullback entry that didn't materialize. Still like it and monitoring, was simply looking for lowest risk entry possible at the time. You are right, plenty of good setups out there, a touch of hyperbole on my part:)
Great replies and comments from all. Happy trading.
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