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Posts Tagged ‘double bottom’

fallen from graceland

fallen from graceland

Has Elvis left the building?

The market plunge continues to frustrate bulls and bears alike.

Extra-ordinary bounces like yesterday are meant to do one thing: squeeze shorts and hope they go away.

The egregious run-up over night is a great example of mis-direction. It stops out the shorts position trades, and then it entices buyers to be looking the wrong way and buy pullbacks as the car is falling off the cliff.

Smart shorts NEVER short too low, accept stop outs, and if unwilling to ride the elevator up courtesy of the PPT and rumors about bailouts, at least wait until the apex is hit and then use the signal bar technique to say “take a shot here”.

Trying to buy pullbacks long all morning was suicidal. Today’s double bottom bounce that had bulls cheering for 1200 and 1210 at the close was wishful thinking.

They were still reading from yesterday’s playbook. A new page was inserted, and only the most gullible of newbies believed that script.

Sometimes we need a hound dog to sniff out the truth, sometimes just a little common sense.

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