Thursday, July 22, 2010

7/22 3:35

Stock market confirmed downtrend breaking DJI 10,310.  Sold 4% SDS 33.20 and shorted 4% SP futures 1088.50

3 comments:

  1. I cant believe at already 2% up for the day and yet there is still enough money to prevent the selling pressure.

    I guess a 3 of 3 of 3 needs even the bears to get so frustrated and the bulls so enthused to make this the exact point of such a big turn.

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  2. The secret is that most market participants are trend followers. The pros follow short-term trends and get in early on longer trends. The retail guy waits and waits to be sure before he hops on a trend. There is a optimal blend between stepping in against an over-extended move and simply following trend once established. Big reversals and choppy markets kill trend followers, so you have to know if the wind will remain with you. The trenders today should get killed.

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  3. I have read that the top banks etc own up to 80% of wealth including equities? What factor do you think these types of issues could play in the market?

    eg a corrupt FED controlled market etc or do you think equities are still held in enough varied hands to be broad enough to track with Elliot Waves?

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