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, December 9, 2009

The Puke and Hope trade

This is the puke and hope trade.

  • There are people on the Breakout,
  • Futures are down some 3pts on the spx.. we open, and they start puking.
  • Sell off about 5 SPX points... and all the ones who are going to puke have done it....
  • Then it rebounds Trades back toward the Breakout point,
  • all the traders who didn't puke have their fingers crossed... "omg....LORD!!!! If we can get back there I'll never trade again."
  • we get close to the breakout point and they start selling, all the Prayers are left unanswered, and the selling continues.
Either that or the shorts blow up at the bell, buyers come in and we are off to the races...

3 comments:

Tony said...

E-minis are UP 3+ points after hours.

Not sure how significant it is, looks mostly due to eurousd strength at the moment.

Bias seems lower in the intermediate term... but WTF do I know.

Eric said...

a coin flip would be better a predictor of the open than the 8pm futures.

Eric said...

mamis-ingredients of an important top the averages more importantly the "Blue Chip" dow continues to make a new high, News is cheerfull and even glowing.

Eventually there is a breakdown that is sufficient to make the rolling averages roll over and head downward

New Economic Indicators and Releases

What does Blue Horse shoe love?- Blog search of "BHL"