Wednesday, September 03, 2008

A beary volatile market

Hello all! It's been quite some time since i last shared. Basically nothing exciting going on and that's why i didn't post. I am still the same, holding on to shorts and no longs for me. Cut my oceanus the next day after the breakdown and keep my noble shorts. Now i am also holding a short on dow at 11,420 level. Other than that, i too suspect we may be near a bottom and ripe for a rebound. The thing to watchout for is whether we continue to break new low. Indicator though is showing bullish divergence, but let's not forget indicator is lagging and classical T.A should take precedence. If you have been following the market, yes it is volatile. One day up one day down. That's why we must form an opinion on the market direction and stick to it. Trading in and out is sure going to kill the amateur's account.

The thin market of August is over and we are seeing increasing volume. Bad news is, stocks are being hammered out of daylight. But is this even surprising? Of course not. Smart traders would know that we can just short. Any rebound, wait for it to hit resistance and short again. There are many ways to determine resistance. Make sure you know them all.

During this time, i am also working on importing trading rules into XPertTrader library. Very soon, users will get to enjoy Elder's triple screen trading system! But if u ask me, i prefer classical analysis versus system trading. I enjoy the art of forming market opinion and trade it. Also the position trading and adjusting that my shifu shared with me years ago. It gives me great satisfaction whenever i profited from my correct opinions.

DISCLAIMER: The contents in this website are for fun reading and must not be taken as a buy or sell advice. You must do your own analysis on top of my postings. By reading this blog, you agreed that i am not responsible for your trading.