one of the reasons i entered my max max max short position trade was the sizzling sentiment, which persisted for weeks, as exhibited by some of the indicators i watch. one thing i have noticed about this part of the approach is that, for a while, the bulls are often right but that, when finally trapped, they are caught off guard. therefore, i am always prepared to be wrong for a short amount of Time and not too too much Price.
i use both Price AND Time stops. as a druid, the winter solstice is very important. i have enough major turning points in my files, when pattern and sentiment allow, that i consider the solstices and equinoxes as hurdles which a bull move MUST clear convincingly. accordingly, i am now willing to consider exiting the trade if i am not right - and right in a fairly impressive fashion - quite soon. my Time stop, the solstice high - is now in place.
there are many things on the horizon for the new year - some fundamental, some political - which will test the rosy scenario now being lemming'ed all over the financial web sites and boob tube programs.
well, the game is set now; all the thinking is over. i think it is time to break out the chateau margaux.
Edited by humble1, 22 December 2006 - 02:06 PM.
