Not the best nor the worst of days. Precious metals pretty much gave everything back on dollar strength. That continues to be a disappointment. Oil strength took the profits away from our shorts and they didn't end nearly as weak as desired leaving those trades success probability in doubt. I even had to lift half of VLO on strength in the last hour. We didn't catch the strength in the indexes either as they gapped over our entry price and never came back in. So, all in all, it was one of those days.
I'm really kind of amazed at how traders continue to jump on catastrophe news and buy. They have been conditioned well. I believe that soon this buy the dip trade is going to backfire and the dipsters will get burned, but hey, it's printing coin right now so they keep doing it.
By tomorrow we will likely see a deeper understanding of the effects of Katrina and how those effects will play out in the market. Today was an up and down day for the obvious effects based on uncertainty. As the uncertainty is removed, we should see trends either reestablish or be rejected. Our job is to determine as quickly as we can which it will be an either lift our positions, hold them or even press them further if it makes sense. Until then ...
I'm really kind of amazed at how traders continue to jump on catastrophe news and buy. They have been conditioned well. I believe that soon this buy the dip trade is going to backfire and the dipsters will get burned, but hey, it's printing coin right now so they keep doing it.
By tomorrow we will likely see a deeper understanding of the effects of Katrina and how those effects will play out in the market. Today was an up and down day for the obvious effects based on uncertainty. As the uncertainty is removed, we should see trends either reestablish or be rejected. Our job is to determine as quickly as we can which it will be an either lift our positions, hold them or even press them further if it makes sense. Until then ...
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