Market Comments Submitted by Nick at Ambitions as a Stock Trader
Submitted by My Ambitions as a Trader and Investor
Big Bounce? No Big Deal…
Despite today’s huge oversold bounce, one thing is still for certain. My shorts are still outperforming all my longs. In fact, almost all of the short sale candidates that I have recommended are already in the money. On the flip side, most of my buy candidates are still acting under the weather. So what gives? This is actually quite normal and just goes to show you that it pays to hold onto strong short positions during market downturns. That means even holding through 400 point bounces. One thing that I have learned from studying market history is that some of the biggest “up” days can be found in downtrends and some of the nastiest dips can be seen in up trends. This makes perfect sense and can be clearly seen in both up trends and downtrends. I still believe that the worst is not yet over. Sure, there will be people that disagree with me and others that will tell you to start buying financials and other stocks because they swear we hit the bottom. Let them do what they want. They haven’t done their homework and most likely will not succeed when the next uptrend begins. This down trend is going to take some time and without a doubt, it will fool a lot of people, not once, but several times before a real bottom forms in. The best advice that I can give is to stay on the sidelines, especially if you are a beginner or do not depend on trading for income.
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