Monday, March 16, 2009

Hangin' in There

Still riding the FAZ for the first up-day since I got in. Volume was good for a turnaround, we'll see tomorrow. I also got a Regulation-T notice from my broker. It basically means I can't day-trade with a cash account, which is what I'm working with, unless I trade small enough to have cash on hand to settle the trades 3 days later. So, I couldn't pop out of those FAZ trades as soon as I had wanted to, anyway. Live and learn.

Stewie is nervous, he is back in FAZ at a lower entry, but has noticed ALL other bloggers are also currently short. His comments are that many of these bloggers are rookies, like myself, and that might be a bad sign.

Another trader on Trader Interviews has stated that he'll look for good ol' setups, and then trade against them, betting that the rookies will take the setup but the big fish will go the other way. There's been a lot of that these days, a lot of chop has washed out traders for a while now.

The thing that bothers me about this assumption is that MACD and EMA's are all in a different orientation. I'm not sure if that is more important, or if just the long-term to short-term line relationships are more relevant. The after-hours trades are already pointing at a head-fake, so I'm expecting higher Indices and lower FAZ tomorrow still. I predict FAZ will form a red candle with a long, lower shadow, but may not drop below today's lows.

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