If you have hung around watching this useless action, you probably noticed that they are doing everything they can to hold things up, regardless of the data. It could be called complacency, but they are not stupid (and they know you are shorting this). Big brokerages are just counting on the retail trader to buy their inventory at higher prices. Then they pull the rug and you think they have just started selling. No, they haven't. The distribution is going on everyday, it's just done in a way that keeps everyone happy and blissfully unaware. A few appearances on CNBC (with a designated hitter) and there you go, a few more millions on Monday pouring into overbought stocks.
It has been fun playing with them, but it's time to think ahead for what will be the next swing. As for daytrading, that's an entire different subject, there was plenty of money to be made either way, every day. In fact, even though the trend is up, there were great shorts, usually at the open. Short the opening bounce, cover at overnight lows and let her run into the close. Like clockwork everyday. Some just take the short and ignore the upside, since it is getting a little toppy. But not everyone has the time to play this game and this is why I also try and identify the next broader set up for the casual reader. First clue? Seven days without testing the 10 dma. That is right around the corner.
It has been fun playing with them, but it's time to think ahead for what will be the next swing. As for daytrading, that's an entire different subject, there was plenty of money to be made either way, every day. In fact, even though the trend is up, there were great shorts, usually at the open. Short the opening bounce, cover at overnight lows and let her run into the close. Like clockwork everyday. Some just take the short and ignore the upside, since it is getting a little toppy. But not everyone has the time to play this game and this is why I also try and identify the next broader set up for the casual reader. First clue? Seven days without testing the 10 dma. That is right around the corner.
This entry was posted
on Friday, November 17, 2006 at 11/17/2006 03:29:00 PM.
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