Well, I wimped out today and did not add any short positions. Now what I am seeing is a lot of setups that are nearing oversold. With the indexes nearing prior lows, I do not want to get caught majorly short if the indexes re-test the lows, and then bounce.
My plan is to keep my current short positions, and maybe add one more tomorrow, depending on the action. Other than that, I will sit on my hands.
Some things to note: One indicator I’m trying to develop screens the universe of stocks for ones with an RSI(2) of less than 2. Tonight’s reading has only 33 stocks with an RSI(2) of less than 2. At previous turning points (lows) in the past year, that number has been well above 100 and usually above 200. For example, on January 22nd, there were 323 stocks with an RSI(2) <2. This could mean that stocks have a lot farther to go before we reach the oversold levels associated with a bounce.
Also, has anyone noticed that there seems to be very little fear right now? The indexesd are setting up to re-test a very significant low, and yet it seems like business as usual.
Finally, some required reading. I’m serious. If you haven’t read this, it is an absolute must. It is surely a trading classic. I started it one evening on a whim, and ended up printing the whole thing out and staying up damn near all night long to finish it.
Wood, check out my latest PG post. Serious shit, buddy.
Thanks for the link/article. Good read.
IMO way too much complacency that we will even hold 11600. The fact that few consider that scare me.
Does anyone really think we’ll cut through that like Montel William’s band Sexual Chocolate did the late 80s music scene?
I think it’s possible people will be put to shame gaming a bounce down thurr.
soooo… anybody want a nice cold Pepsi today?
Depends, did you get out at the end of the day?
Nope, I held onto my PEP. I was actually up overall on the day thanks to my PEP shares, and it considerably brightened my mood.
I didn’t trade at all today but I’m thinking about buying FXP tomorrow AM.
Lost is on tonight … I wonder what the Lost basket of stocks would look like.