Clown-Free Zone... sorry, no clowns allowed Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Clown-Free Zone... sorry, no clowns allowed

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: AllansAlias who wrote (92215)	4/10/2001 12:48:22 PM
From: patron_anejo_por_favor	Read Replies (1) of 436258

Nice bit of wisdom from Dave Landry of TradingMarkets.com on shorting deeply oversold stocks in a bear market: It seems that lately, going short has been as easy as it was to go long back in late 1999 and early 2000. What concerns me is that the market isn't fair. As soon as it gets "easy," it quickly changes. Over the weekend, I began searching for some words to describe the dangers of trading in such an oversold environment. True, the trend is your friend, but oversold environments are prone to correct against you. Then on Saturday morning, I read Boucher (If you haven't read Mark yet, I suggests you do so. Well done Mark.). Rather than try to invent my own words, I thought I use his: "There are few trickier environments than a deeply oversold bear market. Such a market can rally extremely sharply at any time. The Naz could easily rally 20%-30% without interrupting the bear trend down. There are false rallies that make one think maybe lower rates are finally beginning to take hold. And then some bit of bad news will make the market re-think and send it to test or make new lows." Yep.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next