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"

Wednesday, April 15, 2009

Seriously... I'm in my PJ's today

It's raining here or I'd be outside.

I was just going over this with Tony! I don't think we have put in a Tradable top. That we have is one thing to put into your Game Theory that is outside the Standard Deviations for the game I'm running through.

But... We look into the Quantum Universe and see 2 Possibilities. In one Schrodinger's cat is alive, in the other he is Dead.

Here we are at a Crossroads, We were Very overbought, and Maybe we needed to work that off so that we could make that Final Leg up in the market that could build a "Tradable Top.

Or

We are going to Move up aggressively and put the shorts into massive pain, and build that tradable top.

There are 2 models here.

  1. We move up agressivly
  2. we move down aggressively
One universe the cat is dead, one it is Alive. The question is What to do about it....
In one universe we Sell the market if it shots up... In the other, we buy it for the "Buy the Dip" phase.

of course if it goes down and we can't find the low.. we want to get out till we can find it.

But instead of "Catching the Knife" what we want to may be to watch the knife fall and see it stop, and buy the other side.

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