good stuff from marketswing.
By Stockycd on Wednesday, May 30, 2001 - 08:21 pm: Edit
The TRIN-5 has been over 8 exactly 5 times since June of 1998. Each time this happened, there was a sharp rally. All but one time each was also an intermediate term bottom.
Today's TRIN-5 reading = 8.35
Thanks,
Chris
By Luv_Biggins on Wednesday, May 30, 2001 - 07:46 pm: Edit
Catman: Like I said in my original post, I am usually going in and out of the market much like you (not exactly day trading but let's say week trading). With this trade most of my working captial to trade with ended up locked in this trade with CSCO (bought Leaps, shorted, bought June calls in that order).
Why did this happen and why did I miss out on the recent runup? Well, simple.....First, I did not have the discipline to take the minor loss on my CSCO leaps and get out. Second, instead I shorted and shorted more, then got caught in an intermediate term uptrend and did not cover. Third, instead I bought June calls as a hedge to my much much larger than I ever thought short position (which was this large because I wanted to recoup my paper losses from the leaps).
I learned a valuable lesson that I often have preached to others----have stops in place (mental at least) and get the hell out and go on to the next trade. I lost alot of trading time from this situation and I am sitting at a loss with CSCO between 18-24. That's why I am saying CSCO go to 25 or 15.........This could have been avoided had I taken a minor 1-3K loss with the leaps. However, because of my June calls expiring June 15, this trade WILL FINALLY come to an END one way or the other. Trust me, I can't wait.......
Good Luck
Sinclair |
