Two days in a row, the "computer program" kicked in to buy in the last hour. I have to say something is going on. And that paints a good tape to traders.
- It's very likely the market will test 1490-1510 area soon.
- But if we have other "big news" to drop, watch out below.
- This is a short term bottom, we may rally into and after next week's Fed meeting.
- Now it's good time to be in long position, but no options, it's just too risky.
- VIX is still over 20, so the market still has the potential to make a turn, but if VIX continue to drift lower, good for stocks to rally.
- ISEE is under 100 again, also an indication of short term bottom.
- Let's see if we have a follow through tomorrow. Now I'm net long with SSO, UWM and IWM calls.
2 comments:
I've never asked: do you have long-term investments as well? What percentage of your portfolio do you allocate to trading? Don't mean to be too personal or anything, just wondering. I don't know why I trade at all, long term picks always do much better. If you recall, I got into NEM and FXY, did great with both, now I'm hoping to do the same with some beaten down financials (NOT straight mortgage brokers). The only losing trades I've made in 7 years were in DXD (also the only time I've bet against the market). Not that the market won't go down, just that in my experience it's better (emotionally, for me, that is) to wait for the drop/correction/whatever and then go long. Patience, that's what it comes down to...
The earlier post is correct with patience. You are day trading and don't seem to be having much luck. Would you be better off buying oversold stocks or sitting in cash for a clear sign?
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