I don't know whether to see that as contrary... or if I just am scanning the words and actions of some very smart traders. A lot of these sites I don't follow day to day anymore, but are people I generally consider to be smart. The twitter folk I am perusing also are buying 1/4th to 1/3rd positions long instruments such as SSO (2x S&P 500 ETF)
The devil on my shoulder says all these folks know how much money can be made on the "oversold bounce" since we've gone through so many the past few years, so they are trying to front run the move. But seeing all these folks doing so - in concert, and without fear - has me wondering.
For now, I will remain dumb money and buck the trend. :) It seems strange we'd bottom in the mid 1070s rather than mid 1060s. I will prepare the egg for face just in case.
EDIT - I am going to sell both the put groupings since I have a small loss in one, and an ok profit in the other. (S&P 500 is around 1086ish) I was hoping for more of a swoon straight to 1060s, once 1089 was breached to make it easy but nothing is easy :) The danger of any short here is the level of 'oversold'. Back to staring at S&P 1194 as today's key level. I remember now why I hated daytrading when I tried it - you have to stare at the screen every second in rapt attention.
Thursday, May 20, 2010
Many Trading Websites I am Scanning Are Busy Buying Here
Best Of FMMF
- 1: Warren Buffet Piles on Europe
- 2: [Video] Jim Chanos Returns from Europe, Even More Bearish on China
- 3: A Chart to Open Our Eyes - Staggering Changes by Multinationals in Employment Behavior 00s vs 90s
- 4: Futures Blasted on Dexia Woes... and Poor Preliminary China Data
- 5: Market Working to Worst Thanksgiving Since 1932
- 6: Et Tu, German Bonds? Poor Auction Raises Eyebrows