Thursday, May 28, 2009

Bullish Resilience




It seems like the bears really had something going with yesterday's selloff and this morning's quick selloff but once again these bulls have proved hard to beat. This type of action is just begging for higher prices. All charts still consolidating in bullish manner. Buying any weakness seems like the only thing that has been consistently working. The bulls are buying time, time the bears cannot afford to lose. The more attempts the bears try and knock this thing down and fail, the more likely we'll see breakouts! Clearly the most popular trade among the majority of traders right now is SHORT which makes me want to stay bullish and focus on buying dips on tests of support.

4 comments:

Anonymous said...

"The more attempts the bears try and knock this thing down and fail, the more likely we'll see breakouts! Clearly the most popular trade right now is SHORT." ???

Isn't this a contradiction Stewie? Please elaborate.

George

Stewie said...

Hi there george,

i hope it didn;t come off as a contradiction. What i meant to say by "the most popular trade is SHORT" is right now, there seems to be much more traders seeking that illusive top than traders buying those dips which seems to be working a lot better at the moment. everywhere i look in blog world i am seeing almost everyone trying to short the 'manipulated rally'. i, instead am focusing on buying dips even tho i do play it short on rare occasions. hope that helps.

Blue said...

The market is just waiting for the next big news event, whatever surprise that will turn out to be. Was it the Largest Automaker in US HISTORY gone Bankrupt? Nope. Moratorium on foreclosures having ran out finally hitting the housing market with record foreclosures! Nope. Continued weakness with treasury auctions? Nope. Maybe the bank equity deadline next week in June? List goes on...

Short = you squirted in your shorts trying to short this stupid market. http://slopeofhope.com/2009/05/28/the_merry_month_of_may.htm

Assuming I don't F up tomorrow I'll be on my 7th consecutive winning week. Amazing how much $4-$400 trades add up. Now I'm only down that TNA over night short from April. I need to chip into that substantially to get my confidence back and open up my trading a little.

CME short is starting to get interesting at these levels. Want GS at 147 to go short. OIH @ 103.50 is a pivot. $75/barrel is probably in the cards. TSL since April has been beautiful with the oil long trade. AZO finally starting to get hit, but I'm not touching that monster.

Sticking to my 1000 share SKF/TNA counter trade scalps with $.02 profit stops until this range is broken. Amazingly for 7 weeks and 2-6 SKF trades per day I've gotten my entry wrong only twice. I had to reverse the trade, take the loss, and try to break even on the flip. It's boring, it's small money, but it has been working. It's my answer to the program trades driving this mark.

Stewie said...

right on blue. i am very proud of you. i am a huge believer in small wins do add up. you don't need a home run every day to trade well. keep chipping away dude. average $250 a day and you got yourself $5000 by month end.

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