This trade is just too obvious.
Posted on Saturday, March 10, 2007 in market commentary
I wanted to post this chart of the SP500 that everyone sees developing. The trade is to get short. The trade has clear delineation in terms of stops and targets. It’s just that it looks too damn obvious. Maybe that will keep others from the trade. I will be looking to get into this trade next week. Go through your charts of the SP500 this weekend.
Look through past years what has happened when after a hard pullback from highs led to a small rally and then the low is broken. Typically a good chunk of points can be garnered on the short side right below those lows. Obvious? Yes.
Saturday, March 10 10:35 pm
Welcome back to the fold Dave. I hear you with these short setups that are screaming obvious short-sell consolidations. The favorites on my sector watch list are IBB, XLY, XLF, & IYR.
Should be an interesting next couple of weeks that’s for sure.
Sunday, March 11 12:24 am
Just showed up in my RSS reader. You guys have been busy this weekend.
John, do you have your old stuff backed up anywhere? I went to look something up and realized this is the same as your old site.
Sunday, March 11 1:36 am
Jon,
The old site is still around at http://www.thetradingdigest.com/oldblog. The CSS may be a bit funky but all the articles are still there.
Wednesday, March 14 2:51 am
[...] case you missed it the market made a good sized move down today. My post from this weekend nailed that key resistance area and allowed me to at least enter a portion of my potential short [...]
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