Some Trading ‘Gems’ From My Readers
Looking to the indices, on Monday, the Nasdaq lapped higher
and continued higher in early trading. It found its high by mid-day and
generally worked its was lower until early afternoon trading. Finally, it traded
back and forth but generally worked its way higher. This action has it closing
at new highs for the year.
The S&P put in a similar performance. It also
closed at new highs for the year.
So what do we do? The market doesn’t seem to
care about the overbought nature (see recent commentaries) and it certainly
doesn’t doesn’t care what I think However, I still think (and will always think)
that buying an overbought market is never prudent. Therefore, my commentary
remains the same: On the long side, wait for a correction (don’t worry, even if
the market thumbs its nose at all these indicators and blasts to new highs, I
can assure you that there will be an opportunity on the first pullback).
Once again, on the short side, for the aggressive (or those looking to hedge
longs), continue to look for a possible trade in the index shares should they
show signs of reversing.
Looking to potential setups, Mobile Telesys
(
MBT |
Quote |
Chart |
News |
PowerRating) in
the strong wireless sector (a), looks like it has the potential to resume its
uptrend out of a Double Top Knockout-like setup. Just use caution for those reasons mentioned above
(and recently).
THANKS
Thanks so much for all the kind emails in response to
Friday’s column. I am little backed up, but plan to answer each and every one
ASAP.
I’m publishing the following not for egotistical purposes but
because most contained a few “gems” that I thought we all could
benefit from.
“Was busy this weekend and just read your post….nice idiots you get to deal with….you need to remind the guy that you are providing ideas and market commentary based on a specific style of trading that has been clearly defined, and that if he
can’t think for himself and take personal responsibility for his own trades, then he should give his account to a professional….or just buy a cd….As for the bearish call last nite, it confirmed MY OWN THINKING…and what do you know…I went short and made money today…”
“Ninety percent of trading is trying to stay out of trouble, anyway. Keep it going Dave, you’re doing great!”
“just want you to know that there are those of us that appreciate your column as opposed to the immature
as*** that feel they have to tell you that you were wrong, etc…. hey, if you , I or them are wrong in this type of a market, so be it…don’t let the bastards wear you down…”
“Reading your comments today, it’s hard to believe you get such crappy e-mail from disgruntled readers. I’m no genius myself but I’m smart enough to know that nobody’s holding a gun to my head and forcing me to buy this or that, or telling me I’m not allowed to buy at certain times. I wish it WERE so easy that for the price of a subscription I could get Guaranteed-By-God winners. It sure would be a lot easier than looking at charts all day. It’s easy to play the blame game. Who do I blame for not coercing me to buy a few thousand shares of DELL when it was 9 cents in 1990? I’ll tell you…it’s all those know-it-alls who told me it was dumb to buy penny stocks!
“
“Dave, your hate mail indicator is great.
Those stupid traders don’t know anything about markets. Your nightly column is a big help to me!”
“Yes, not having a crystal ball at hand is tough because there are so many fools who want to be spoon-fed everything, from religion, politics, wars to money in the markets—