Ha! Sorry couldn't help myself.
Joking aside, I hope all of you are all cash as I continue to be since early last week.
I think we are setting up for a big short squeeze at some point as I have heard that there is data that today was the highest day in which financials were shorted. Seems a bit late to me and mostly will lead to a counter trend bounce at some point. I will be following intraday charts for confirmation and will try to play a squeeze should it occur. Right now we haven't seen any reason to risk our precious capital. There have been a few intraday spikes which indicates some short covering but nothing that noteworthy. There was some big accumulation of UYG in the final minutes of the trading day which could make things interesting tomorrow if some sort of news comes out that leads to a gap. That could cause some major short scrambling which might a major squeeze and a gap and go. But truly I am hoping we break the recent lows, see some capitulation action and see big volume buying which offers a true low risk/high reward entry. I will post any entries as I see them through out the day. I continue to watch some commodity names but the action there today was quite atrocious and given the fact they haven't been hit quite as hard lately, I fail to see a good entry.
JAX
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6 comments:
Finally a chart I understand!!!
Hi Jax. I have been following you blog for some time and find it very interesting. Especially when you include charts and your analysis.
I'm a poker player and have a lot of free time in the day and would like to learn about swing/day trading. Is it possible that you could give me some tips on where to find some worthwhile reading websites or books?
good luck with your trades!
Scud,
The best book I have seen as far as offering a good introduction into trading is Shark Investing by James DePorre. His website is also very helpful. If you go to sharkinvesting.com there is a tab that says "free services," if you follow that to shark school it has some general information on there investing style and examples of different chart patters.
From there you really have to develop your own style based on time and financial restraints and risk profile. I use many of the same principles they do but just trade alot of different patterns. Anyone telling you they have THE answer or THE way to trade successfully is Full of shit. That is why I try not to preach and just almost make a record of my thought processes, notes, what I am looking for, etc. Ultimately you have to decide what style fits you best and the biggest thing is just to try to learn as much as you, remain open to trying new things, constantly critique your performance and build off what works. Each individual investor has so many different characteristics that you really have to work at it to find what will be successful for you. By the way, don't know how you found my site but my brother is a successful poker player (his blog colmsum.com), was wondering if you knew him?
JAX
I reviewed all of the freebies and it was pretty good stuff altough more of an introduction.
I guess I am in the spot where I have a lot of information but I havn't made any of it mine.
As you suspected I found this site through ColsUM's blog. I don't know him, I'm just a DC subscriber with too much time on my hands ;)
Thanks a lot for your advice and effort to help. I'll be sure to follow your trades and try to learn as much as possible!
you convinced me to follow your blog with this chart
HA! Thanks, I guess... that about summed up all my feelings about the market at the time. I hope there will be more frequent posts soon but hard for me to post setups when day after day the market continues to look like a slow trickle of urine.
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