I am sort of blind when it comes to "who" is trading, but when I see lots of buying at open at the highs, that says 'rookie' to me. Likewise, when I see lots of selling into the pullback, that says 'rookie' to me. On the online brokerages, I saw few trades at open and very few sells on the pullback. That says to me that the thousands of traders that bought this yesterday and the day before know exactly what they are doing. This leads to the realization that it will be more difficult to "earn" any of their money. So the warning is that if we are in these, we need to trade aggressively and 1. fight for our profits where we can get them 2. Don't expect the moon today, it won't happen 3. There will be a mass exodus today before the weekend [unlike with rookies who will gladly hold], so prices should fall dramatically.
Now this applies mostly to the thinly traded issues like MHMY, SIEB, JBOH and not to EGRP, AMTD, DLJ. I guess I am saying that "psychology plays as big a role in trading as tactics."
Rande Is |
