Financial history doesn't repeat itself, but it often rhymes. You can't be stupid enough to trade off anything I say.... I'm lucky they let me out of the straight-jacket long enough to trade.

J. P. Morgan

"Sell down to your sleeping point"

Tuesday, September 2, 2008

ok...... Lets stop talking and play my book

I picked up some RIG and NOV.

8 comments:

tradewell said...

I'm sure you'll do well with them, this week.

Eric said...

did you hold JCP?..

that is the worst part about talking a trade.... You get more emotionaly involved than one should be with some lame pieces of paper.

tradewell said...

No, I covered it on Friday, like I said, just for a scalp.

I'm keeping an eye on it.

Today I'm near break-even on all my shorts except LVS.

Loving my new software! So much more convenient.

Eric said...

watch out, that may throw you off...

Charts are good.

tradewell said...

Yeah i see, lots of buys on the Invivo list.

I'm just waiting for an exit point. No strong conviction in my shorts yet.

Eric said...

Discouragement and Aversion Phase for Homebuilders?
After a long price slide, the area where churning takes place is between the Discouragement and the Aversion phase, after a significant decline has already taken place. Often, this appears as a head and shoulders bottom, a cup and handle or a saucer dish pattern. As the public continues to dump stocks, short sellers become bold and bearish. Their views are supported by bad news and poor economic data. Prognostication of lower prices to come is undoubted. This is when everyone knows that the market cannot ever go up again, and that anything, even cash, is preferable to owning stocks.

does this sound like the market in general... or just the homies?

Eric said...

I'll work on some charts.

tradewell said...

I don't see bold and brave bears and stock-aversion yet. There's a bunch of fervent financials defenders. They sound really crazy at this point. I mean they can turn out right in the end ("buy fins with both hands NOW!!"), but there's still no bearish mood everywhere. When those people give up, then that's it.

Don't think there's so many visionaries able to spot the bottom, just lots of optimists (still).

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