As we've discussed, we have a limited number of choices concerning time preference of money...that is, how we elect to commit (or not)
____________________________________________________
- Volatility expansion (e.g. NR7 - narrowest range of 7 days)
- Buying pullbacks in trends (long or short)
- Buying support and selling resistance (beware the market that consolidates at support or resistance)
- Buying or selling exhaustion plays (DeMark Sequential (tm))
- Breakouts from consolidation
Plenty of narrowest range of 7 opportunities, but still wide high-low ranges.---------------------------------
Yahoo (YHOO) is a good example of an NR7, but really such a low price to make it not so interesting.____________________________________________________________
If you want to be short (not sure I do before the election)...then you might want a strongly trending stock that has pulled back.
Here's LBTYA, trending south with a pullback (rally)...but it has to trigger a short by price weakness._____________________________________________________________
Zimmer Holdings (ZMH)...can Zimmer get dimmer? There are a lot of these general types of setups._____________________________________________________________
Proshares Ultrashort 20 Yr Treasury (TBT)....resistance? This is really the ultimate kind of trade what you see, not what you think._______________________________________________________________
Good trading and great risk management to all.
Educational use only. Never intended as investment advice.
0 comments:
Post a Comment