Tom and Don, Don't want you to feel all alone in your nadir of sentiment contrarian toast. Five days in a row of selling is pushing the odds envelope but only at 31:1. If Monday is down then we go to a more tradeable 63:1.
The short term occilators are looking attractive (sounds like a strip joint), while the long term are neutral to declining through supports. If I may, let me put in some fundamental strategic thinking on where we are in the woods and how to trade it this week. There are:
A. end of year tax strategies are in play, dumping and pumping
B. cash inflows continue strong into funds
C. bonds are supportive of not having disaster days (-300)
D. we're short term oversold
.... 1. based on news
.... 2. based on declining profit expectations
E. there are few up momentum sectors
F. there are many technical oversold sectors including Don's indexs
Conclusion:
Seems to me its a wonderful environment for accelerated volatility with a growing bias (but not fundamental support for) the upside.
This is a day trading market, especially as its the end of year expiration cycle, the last week with plenty of energy building...
Psychological preparation is important, don't pine over lost intraday opportunities... in other words, if you insist on trading, while calling in your long or short position you may as well give a selling price at the same time, look for a clean percentage gain, something like 10-20% (unless you're watching realtime and can pull the trigger quickly) on OEX trades when tick or trin indicates an extreme.
Fast market fill strategies are best IMO.
Jim |
