Thursday, November 13, 2008

TODAY'S ACTION

I found exactly what I was looking for, even the increased spike in volume. This was no surprise to me as it was bound to happen. I am up 14% today and up 42% for the month so far and 3 out of 4 of my students are up over 10% today alone after joining me in killing the bears (at least for a day). I even said that today was the day to pay attention to (in my post yesterday), so if you didn't make money and you were trading all day, then something's wrong [nice version]. Let me tell you something, it's days like today where you make the biggest buck, days where you sense tremendous reversal. Other days are just "normal" days. You don't even have to trade everyday.

Also, if you watched CNBC into and after the close, you could see all these people try to give fundamental reasons to try to explain the rally. Let me tell you something again, don't listen to those idiots, because there was absolutely nothing fundamental about it. It was a pure technical rally and if you know your technical analysis, you made a killing today while the fundamentalists remain dazed and confused as to what just happened.

I just don't play shorts on days where a potential reversal is imminent. That's the smart thing to do. We hit an intra-day capitulation point and formed a V-spike. I issued my buy order at 1:52PM and went 100% long and the rest is obvious. I stayed in cash for the most of 2 days prior to today for the sole purpose of waiting for...today. You must have patience to find the best possible entry and bank on it.

As for tomorrow, let's see what happens. Watch the 20-day MA. Be ready to sell if needed.


SPX 1-day

SPX 10-day
SPX 6-month

NASDAQ 1-day

NASDAQ 10-day
NASDAQ 6-month

Don't forget to try the Free Trend Analysis. It's FREE, so give it a shot!

3 comments:

Anonymous said...

( joe ) hello your thoughts on REV, take care.

John C. Lee said...

timeframe? Also the chart is very erratic

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