[INTRA-DAY ACTION]
More selling.
Only thing catching my eye today on a technical level is SUN which has strong historical resistance and therefore support at the $23.40 area. It moved slightly off this just now to $24. It's hard to anticipate a rally in SUN given the market, but a significant breach of this could provide a good short on a re-test.
In saying that, I was looking at AMD at $4.04 on Monday as long term support, and that held nicely an opened up at $5.4 on Tuesday before a strong pullback.
PS $46 for a share in X. Unreal. This was $146 not too long ago.
Update 17:55
Normally I would not laugh at the misfortune of other people, but today I had to. I used to love the DTRS chat room, but for the past few months it's just been swamped with idiots who are looking to piggy back his trades. He is a good trader, but the people he attracts are total morons. There are also a couple of regulars who think they rule the roost and preach their elite skills to everybody - but they talk just as much crap and several times a day you can watch their hypocrisy in action as they say one thing and then do the other.
Anyway, RS picked a bottom in F at $2.55. I mean, this is not a market to be calling a bottom in, that's how you lose money. Ford.. they make cars. Global warming, credit crunch, oil prices. $2.55 is a number that seems to be pulled out of thin air, the bottom after all is zero. It's not even a psychological level, nor a technical level.
Instantly, and I mean literally the second he said it, the chat room was flooded with people saying "in Ford at 2.56, 2.55, 2.57 - 2000 shares, $10k worth, 1000 shares". It was unreal - not a single "Are you sure? What's the setup? What's the target? What's the stop? Shouldn't I be shorting GM instead?". Basically all that was said was that if it moved 25 cents, you would make a 9% profit! WOW!
This really irked me for several reasons that are pretty much what I have learned to be the gospel of trading:
When it did 4 minutes later, carnage, after everyone loaded the boat with F at $2.55, F was trading at $2.12 within 240 seconds. That is more or less a 17% loss within 4 minutes. Why on Earth would anyone put that level of risk on themselves if their pre-trade target (which didn't actually exist) was a 9% gain?
There was only one trader who said they took a big hit, and sold out as it passed $2.25. Everybody else held. Everyone held because they are idiots.
Ford bounced a bit back to the $2.4 region, and everyone continues to hold a loser. Even if F goes to $3 or $5, the only winner in my eyes is the guy who put his hand up and accepted he made a mistake, and took the punishment (a loss) in the testicles. Everyone else is simply a fool who really should not be trading.
If $2.55 was "the bottom", then surely if it is passed, it is now "the top".
Rant over!
Only thing catching my eye today on a technical level is SUN which has strong historical resistance and therefore support at the $23.40 area. It moved slightly off this just now to $24. It's hard to anticipate a rally in SUN given the market, but a significant breach of this could provide a good short on a re-test.
In saying that, I was looking at AMD at $4.04 on Monday as long term support, and that held nicely an opened up at $5.4 on Tuesday before a strong pullback.
PS $46 for a share in X. Unreal. This was $146 not too long ago.
Update 17:55
Normally I would not laugh at the misfortune of other people, but today I had to. I used to love the DTRS chat room, but for the past few months it's just been swamped with idiots who are looking to piggy back his trades. He is a good trader, but the people he attracts are total morons. There are also a couple of regulars who think they rule the roost and preach their elite skills to everybody - but they talk just as much crap and several times a day you can watch their hypocrisy in action as they say one thing and then do the other.
Anyway, RS picked a bottom in F at $2.55. I mean, this is not a market to be calling a bottom in, that's how you lose money. Ford.. they make cars. Global warming, credit crunch, oil prices. $2.55 is a number that seems to be pulled out of thin air, the bottom after all is zero. It's not even a psychological level, nor a technical level.
Instantly, and I mean literally the second he said it, the chat room was flooded with people saying "in Ford at 2.56, 2.55, 2.57 - 2000 shares, $10k worth, 1000 shares". It was unreal - not a single "Are you sure? What's the setup? What's the target? What's the stop? Shouldn't I be shorting GM instead?". Basically all that was said was that if it moved 25 cents, you would make a 9% profit! WOW!
This really irked me for several reasons that are pretty much what I have learned to be the gospel of trading:
- Never even attempt to pick a bottom
- Never take a stock tip
- Plan every trade
- Never enter a trade without a target
- Never enter a trade without a stop
- Never enter a trade against the trend
- Do not be such a greedy pig
- Do not average down on a losing trade (3 or 4 did this later on)
- Do not use a blindfold when trading
When it did 4 minutes later, carnage, after everyone loaded the boat with F at $2.55, F was trading at $2.12 within 240 seconds. That is more or less a 17% loss within 4 minutes. Why on Earth would anyone put that level of risk on themselves if their pre-trade target (which didn't actually exist) was a 9% gain?
There was only one trader who said they took a big hit, and sold out as it passed $2.25. Everybody else held. Everyone held because they are idiots.
Ford bounced a bit back to the $2.4 region, and everyone continues to hold a loser. Even if F goes to $3 or $5, the only winner in my eyes is the guy who put his hand up and accepted he made a mistake, and took the punishment (a loss) in the testicles. Everyone else is simply a fool who really should not be trading.
If $2.55 was "the bottom", then surely if it is passed, it is now "the top".
Rant over!
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