I am out of my shorts from yesterday after this 2% rally to new highs, I was skeptical of the rally, but I will keep the hedges as longs from here though. Huge divergences, but ridiculous liquidity.
New LTRO, rate cuts by ECB
Started by
arbman
, Jul 27 2012 12:32 PM
4 replies to this topic
#2
einscodek
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Posted 27 July 2012 - 12:34 PM
I can see rate cuts but wheres the news of a new LTRO?
#3
IYB
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Posted 27 July 2012 - 01:13 PM
Okay- now I agree....I basically agree with all of that Arb, except....market trends all saying higher first... the drop comes from 10-20 points higher imho. Best, DI don't think there aren't any shorts left out there, now the market drops like a rock for 2-3 days below 200 dma is my guess. The leadership absolutely sucked today, RUT and NDX underperformed SPX, the growth sectors pretty much stopped at their gaps. I don't think there should be a bottom before mid next week. What's truly disgusting SPX has been closing the weeks around 1363 week after week while everything else crumbled... I doubt any further upside comes out of this.
http://stockcharts.com/c-sc/sc?s=$NYAD&p=D&yr=0&mn=4&dy=0&i=p95798002474&a=270840190&r=629.png
“Men, it has been well said, think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, one by one.” ― Charles Mackay, Extraordinary Popular Delusions and the Madness of Crowds
#4
orange
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Posted 27 July 2012 - 01:24 PM
I'll leave this here...
"When your position is underwater, average down" - Professional Trader
#5
arbman
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Posted 27 July 2012 - 03:22 PM
I exited my hedging calls, thanks to the ridiculous move, not a big loss here. ALWAYS HEDGE, it is the cost of business.
