3 replies to this topic

[Mr Dev]

The NDX Weekly chart below has only price consolidation to offer in the way of something positive.

Certainly the weekly chart does not look that Negative,.... but I want to make another point with the chart.

For 8 weeks now,,....neither the Bears have been crushed nor have the bulls made any money.

As this thing has been stuck on 1900 longer than any other number on the charts.

Who has made money,... well the folks that have flipped both ways within those tiny little candle bodies,.. or at those wick end points.

Volatility is rising and price has yet to really fall.

Stay tuned, as we will likely break one way or another,... but bears holding long term and getting wiped out,...

I seriously doubt it,... they are the faster traders,. not the buy and hold investor types.

Frankly I think it is this reason the markets are this high and not going anywhere,.. people easily playing both ways,...and only the best

making any money at it......week to week that is.

Best

Edited by Mr Dev, 13 June 2007 - 09:26 PM.

[thespookyone]

Mr Dev. Point well made. From my experience, bulls are much longer holders, perse, than bears. Because of the unlimited risk in shorting, being nimble is imperative. For myself, I have been in and out, on a very quick basis-and it's been working out fine. One of the things I like most about the short side is the speed of the trade, the "we take the stairs up-but the elevator down" aspect. I try not to be bull or bear in my trading, but to select the path of least resistance. Although I certainly do not like the market internals here, I have posted a few times at night-when the path the next morning looked up-and said exactly that. I guess one can't be good at shorting-unless they know when to get out of the way. Although shorts provide liquidity to the market, it seems they are allways held in disdain, somehow being the "culprit" keeping the market from going up. I think we see more frustration from bulls because they expect more than they actually get. A bull holding since May 7th till now, has made a little round trip, now back to where they were-and made nothing-and, as you say, the same could be said for a bear holding through that same time frame-the difference I think, is most bears don't hold. Of course, in a naz sense, I'd rather be a bear holding since nasdaq 5000 than a bull. You are right about the markets being ready to break one way or another, and that although volatility is rising price has yet to truly fall, but, I can't help but feel that implied higher volatility is not positive to the market. That said, I'll trade it whichever way the wind blows-when I sense it is starting to blow hard. Spooky

[Tor]

Great post Dev. As they say bulls make monay, bears make monay.....only if they get their timing right

[Mr Dev]

Great post Dev.

As they say bulls make monay, bears make monay.....only if they get their timing right

Dat's a goot won

I can't help but feel that implied higher volatility is not positive to the market. That said, I'll trade it whichever way the wind blows-when I sense it is starting to blow hard.

Spooky,
Well said!