No, I did not intend to bash technical analysis. I was bashing analysts in general but it did not come through that way on edit.
Perhaps I was just getting down on technicians who were like John Kerry in Dubya's TV ads in 2004. Any way the wind blows.
Golden cross? Must be true, get bullish!
Head-and-shoulders? Must be true, get bearish!
Failed head-and-shoulders? Must be true, get bullish!
My head is spinning from all the flip-flopping. Suddenly the SpongeBob theme song is in my head and I see analysts dropping to the deck to flop like a fish. Go as your kids for the lyrics sheet if you do not understand.
Here's the deal - the market is doing its job. It is making as many people as possible look bad as it chops up daring swing traders. Day traders - awesome. Swing traders - chop, chop, chop. My own picks are well underwater right now but the higher this rally goes, the better the shorting will be. I personally took a nibble near the close.
2 comments:
Hey Mike, i know what happend today...and you are right...Bob Sponge Faults....take a look at ;)
http://g1.globo.com/Noticias/Economia_Negocios/foto/0,,21371454-FMM,00.jpg
He did it today..... ;)
I have been banging my head against the wall as the market continues to surprise me with these sharp moves. I took your advice from last time that money management is crucial. I closed my puts when I sensed something unusual on monday morning. but still didn't do good enough. I NEVER expected a 7% move in 3 days. this is my 2 cents, today's technology is much more advanced than 8 or 20 yrs ago. Now, I can trade more like a professional with tools from ThinkOrSwim and TD Ameritrade. trend lines, MA's, MACD's, OBV's the whole nine yards. With everything being available, looks like everybody wants to be ahead of the curve. I think people are trading more based on what they see from these tools rather than using their judgement and using risk analysis that controlled previous years turnarounds. So, if you look at the drops last september and the spikes this spring, they were quite unusual. Everybody wants to get out or everybody wants to get in. I think its just an illusion of being in control. Man..I sound like Deepak chopra. Just my thoughts..
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