6 replies to this topic

[Rogerdodger]

There are technical indicators, support, resistance, lines etc.

Then there is the market.

The late Zoran Gayer used to mention the tactical aspect of the market.

In war, they used to line up in a straight line and shoot.
It was very impressive, especially to an out manned army.
But over time, that turned out to be a bad way to fight a war.
The new formed US devised a tactic of quietly laying in wait to surround and surprise the over-confident British troops.

[img]http://tbn0.google.com/images?q=tbn:uCAIOneXCq3OIM:http://www.cvco.org/sigs/reg64/gif/company.gif[/img]

The obvious on a chart can be used to lay a trap.
Sentiment offers a clue.
It was very bearish Monday night.
The bait was in the trap.

Don't Shoot Until You See the Whites of Their Eyes
American Minute - June 17
By Bill Federer , 6/17/2005 9:13:54 AM "Don't Shoot Until You See the Whites of Their Eyes!" was the order given on June 17, 1775, by Colonel William Prescott to colonial troops defending Bunker Hill. They were aiming at the wall of twenty-three hundred British soldiers marching toward them from the Boston Harbor in their bright red uniforms with bayonets fixed. Twice the Americans repelled them until they ran out of gunpowder. Over one thousand British died and five hundred Americans.

Edited by Rogerdodger, 12 July 2007 - 09:43 AM.

[Cirrus]

Very good post.

[Rogerdodger]

Shenanigan

Possibly originates from the Irish sionnachuighim, meaning "I play the fox."

You see it most often before Options expiration.

Edited by Rogerdodger, 12 July 2007 - 09:27 AM.

[da_cheif]

Shenanigan

Possibly originates from the Irish sionnachuighim, meaning "I play the fox."

You see it most often before Options expiration.

weekee watchee..........da wytz of der eyz is in da GAP......

[ChickenLittle]

Good point RD! Tactics are soooooooo important in trading the market. Too often I get the technicals correct and then do something really dumb and screw up the trade. It's important knowing what you expect by laying out a tactical road map before the trade. But screwing up the tactics is my curse and I'll probably live with it for the rest of my trading days. But after 50 years, if I don't miss the big moves I'm happy.

[ogm]

The real trap may not always be where its obvious. The good news of the day, is that retailers , even though they reported falling sales, the expectations supposedly were even lower. Means consumer is ok. All those gappers, like KSS, JCP, ANN..... are slowly selling since the open. Some of them are red already. And at the same time equity p/c is at exciting 0.4. And if you look at the equity p/c over the past very days its going down fast, as the market is basicaly flat. A lot of optimism is building in the flat market.

[Rogerdodger]

A lot of optimism is building in the flat market.

It was very optimistic Thursday and Friday. Then came Monday.

Tricks work both ways.