Tuesday, August 7, 2007

Don't Blink

Don't Blink, the market is up, and now it's down, up, down. This has been one of the fastest and most psychoatic markets i have seen in a very long time. The DOW can be literally up or down 100 pts in in a matter of seconds it seems. Very hard to trade with size in a mrkt like this. I think i need some therapy after today's wild ride.So going forward i am expecting more of the same, just a very sloppy move higher. I was hoping for a traditional rally up to relieve oversold levels. THis is a dangoerius mrkt and i do not recommend taking home stocks or trading with size. My goal for tmrw, is to keep it small and simple and loosen the stops until things chill out a bit. As of now, the current upmove we are seeing in stocks has all the makings of a corrective move and hence gives me no confidence at all that we are seeing real actual buying. I am starting to really feel like we are working out this oversold conditions but setting up for more downside. I am OK with that b/c i really enjoy shorting. There's some serious money to be made shorting and i am starting to get excited not for a rally but another bout of selling. I am also gonna avoid shorting into selloffs and avoid buying into rallies, odds are very high, that volatility will cause reversals on get you stopped out with losses. Short rallies and buy selling might be a smarter strategy.

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