Comments on: Max Pain Alert

By: Shanky "Mr. LONG (is gone)"

Shanky "Mr. LONG (is gone)" — Wed, 12 Nov 2008 13:56:17 +0000

I’m with Mo. I am a big bear. I missed the last rally because of that. I am now prepared to trade the market both ways. Things suck all over, but these rallys are a great place to make some coin as well. Timing them without Craig will be tough. He may be able to provide enough assistance from the sidelines to get us thru this market. Kenny’s charts will help as well.

Mo, now may be an appropriate time to exit EEV, but I would keep the powder dry. I am not short at this time. I do not use options (not yet at least – I’m not quite compitent enough to take that leap). This market cen turn in an instant, and both you and I know there will be an enormous opportunity in EEV sonner than later. There is a great article on China and their economic issues on Mish’s site you need to read if you haven’t. There are also some great posts on why the USD will continue to be strong and why the US is in better shape than the rest of the world (if you can believe that). Thanks for all of your input. If you should decide to leave here – please take me with you.

By: Mohan

Mohan — Wed, 12 Nov 2008 12:02:50 +0000

Agree one hundred percent. While I am playing some on the long side for now, I am also positioned not to miss any major downward move. I hope to stay that way until I see a 600 handle on S&P

By: Seattle

Seattle — Wed, 12 Nov 2008 06:57:08 +0000

This is precisely why very few people make any money in this type of a market. Historically, deflationary recessions are very hard to trade. The majority is, as usual, heavily long. The few that do short are usually the hedge funds and traders. In their effort to trade the violent bullish rallies inside a bear market, they usually miss the big moves down. I, too, am bearish and have been for about a year now. However, I managed to miss many of the big moves down because of my desire to trade the bullish pops. It wouldn’t surprise me if, while all the bears head for the sidelines or go long, the market just collapses.

By: Josh

Josh — Wed, 12 Nov 2008 04:27:34 +0000

Mohan,

I exited the rest of my EEV late this afternoon and am holding lots of dry powder. However, I’m skeptical of going long. I think I may just sit on the sidelines during this rally and wait for a better reentry on shorts, but if I do get long, what securities are you seeing that have potential? Some I’m looking at are GS, DIG, and UYG.

By: crash

crash — Wed, 12 Nov 2008 04:23:01 +0000

Josh,i just study the stoch’s and demand /supply..We should have one more big down before T-day.Then we should rally into 2009 as selling should be exhausted

By: crash

crash — Wed, 12 Nov 2008 04:18:09 +0000

futures are muddling , up down,up down,lets see what Europre does.

By: Josh

Josh — Wed, 12 Nov 2008 04:01:08 +0000

Any particular reason for that speculation, or should we just trust your gut?

By: crash

crash — Wed, 12 Nov 2008 03:59:19 +0000

Look for an up open tomorrow and then sideways during the day and red into close Thur-Mon will be down.

By: Mohan

Mohan — Wed, 12 Nov 2008 02:51:51 +0000

Don’t be so sure about me being right. I have a lot of lumps to prove it. Check out this video by Tony C., who expressed similar sentiments as I am just a while ago.
http://www.youtube.com/watch?v=XKCGoE2c8ok

By: Mohan

Mohan — Wed, 12 Nov 2008 02:40:16 +0000

Thanks fir the alert. I just watched it. Amazing, his take is identical to mine.