11 replies to this topic

[ken29]

Any bulls think this gap down is another buying opportunity? The big question is, is this the beginning of a 5-10% correction or the beginning of a bear mkt of 20%+ decline?

[traderpaul]

Any bulls think this gap down is another buying opportunity?

The big question is, is this the beginning of a 5-10% correction or the beginning of a bear mkt of 20%+ decline?

Noone knows for sure.....What is wrong with just following the tape?

[arbman]

First of who cares? Really. Why noone knows for sure? Well a lot of signs for now at least... The utilities and energy are still showing signs of strength despite the carnage in the markets, I would think there is still some sort of liquidity and economic strength. This will end up being a trading range until everything turns down again. For now, this is the beginning of a correction, imho... - kisa

[nimblebear]

Maybe Ben called Alan and asked him if he could say something to take some exuberance out of the market. Shang em high drop notwithstanding. (did they translate what he said in Chinese ?) either way you have to admit some sort of correction had to be coming. If the bulls bite on this, and then it drops a few more times, then maybe it will be healthy. Funny, i thought seriously yesterday about buying Rydex inverse funds on Dow and NDX.

[OEXCHAOS]

For all practical purposes, this is NOT the start of a Bear market. The sentiment signature isn't there. It also means that even if the print high for a few indices was hit, the majors will be visiting theirs or coming very close again in the not too distant future (meaning less than a year and probably within days or weeks). That said, more decline is perfectly consistent with the sentiment that I've been looking at, and such is what I've been saying for some time. Mark

[eminimee]

8 to 10%......then moon shot. But I digress and repeating myself.

[fib_1618]

Any bulls think this gap down is another buying opportunity?

Fib

[Sentient Being]

God help me. I woke up, that bank stock bounced right where I thought it should, so I bought. In my personal trading based on my own work this year I've had two winners and one flat. I'm due for a loss. I think WM may wind up being it. By the way, I'm only looking for a couple of days of upside here at the best. It's a very very short term trade because I'm bored.

Edited by Sentient Being, 27 February 2007 - 01:22 PM.

[ken29]

Mark, I'm no expert in sentiment but I have to think we should get more margin selling in the coming weeks especially now that the margin debt reached new record high of $285 bn.

[beta]

8 to 10%......then moon shot. But I digress and repeating myself.

That's my vote.

I suspect this is a typical pre-Opex set-up. March Opex requires major gamesmanship.

Here's my playbook for the next 3-6 months:

1. Sell ITM March putz two weeks before March Opex (around March 2).

2. Buy WOTC April calls 1 week before March Opex (around March 9).

3. Dump April calls on expiry Friday for $$$.

4. Then the real landslide begins ....

5. Buyback everything @ 30% discount during the late summer doldrums.

Edited by beta, 27 February 2007 - 02:04 PM.