Thursday, June 16, 2011

Short Setups To Watch In Case The Bears Mean Business!

Keep these handy in case these angry bears have a more serious agenda than many of us have in mind currently. As a pure technical trader (neither bull nor bear), i cannot help but look at the under the surface over the last 1-2 months and think that some bigger force is working very hard to knock equities down. Only recently have we seen the big spikes in the VIX that is often seen near market lows as fear and panic starts to take over HOWEVER, this time it sure has a "different feel" to it. There is almost a "disbelief" among the trading/investing community that something really big could be starting on the down side. What will be the catalyst? I have NO CLUE. i am only a short term trader who looks at how equities behave by manually scanning hundreds of stocks daily and nightly and it's safe for me to say that things have been very questionable for a while now.

Look, i am sure we are going to see bounces(some strong, some weak, some will feel really "good") but things are starting to tell me that we could be looking at a much bigger decline sooner, rather than later.

I hope that i am dead wrong on this and like i said, i am a short term trader so long/medium term projections really mean nothing to trader who is short term but it's important to keep in mind where the big picture COULD BE HEADED.

Trade smart, respect stop losses now more than ever. Protect the MOTHER GOOSE! Most of the long positions i have traded lately, once stopped out, i look back at them several days later and i notice that i got stopped out at MUCH higher prices from where these stocks are currently trading at NOW.

What has been working? Simple, LARGE amounts of cash levels and SHORT positions!

Wish you all happy trading.


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