That's a tough concept for some people (me too in the beginning) - to say, "I bought XYZ at 30, sold at 32 - now you want me to buy it again at 34?" but each trade has to be viewed as a "new" trade with new history, etc., agree?
Let me ask you this. In the context of your tape reading, how do you account for what I think of as sort of "unnatural" activity? For instance, last Friday, I'm watching ENTU at the end of the day on level 2. There is eod short covering in the futures, so the stock has ticked up from 25 3/4 to 26 3/4 bid, 27 ask, and all the 27 asks get taken out. Then suddenly, in what seems to me to be an obvious attempt by some short seller to screw up the close, some guy using REDI jams a large ask in at 26 5/8 (3/8 UNDER the previous trade). I see this constantly these days.
Now that I think about it, we're not holding over so attempts to screw up the close don't matter I guess. But still, how are you dealing with these frequent ad hominem short attacks in the context of your own tape reading? They're not really a reflection of the normal supply/demand equation. I suppose it can be reversed as well, with "long" attacks. |
