Market took a hammering today

Magdoran · 13 September 2006

Luke6450 said:
Great two days of hammering.... If it doesnt improve tomorrow I can see myself being stopped out of all my shares.... Really hoping some super funds or something gets thrown in to push it up in the right direction again..... But what if it does continue to be so bearish? What do we do then... Keep trading with a lot less chance of getting a winning trade or do we change markets.... Not sure if there is any other good markets out there at the moment. Someone on the thread said Dow has been going sidways for 7 years now.... Jeeeeze... They sure are making it hard for ppl to make money these days now arent they.. What do we do ... what do we do!?

Funny, Luke6450,

I thought you were using the “famous” Darvas system aren't you? Why don’t you just following your system’s rules?

Magdoran · 13 September 2006

General Comment: Reading many of the comments on this thread gives me the impression that many do not understand how to deal with these market conditions. Would that be a fair estimation?

If not, why didn’t people making comments on this thread holding long positions use protective strategies like buying puts or selling their shares to ameliorate any bearish moves if they had a bearish estimation of the market? (Of course long term holders have a long term view, and that is a different matter – but protection still would have been a viable course of action, wouldn’t it?).

Furthermore, if a person held the view that there were bearish probabilities why wouldn’t they have taken bearish positions in the market and take advantage of the downward movement? I’d suggest that you can make very good profits from the short side of the market (often much more quickly than bullish strategies).

I have held no long positions this month in ASX optionable stocks (I only trade options available from the optionable stocks for the ASX – no small caps/shares). Perhaps there were a couple of longs to be had, but by far all I could see were shorts. Am I the odd person out here?

Freeballinginawetsuit · 13 September 2006

Magdoran said:
General Comment: Reading many of the comments on this thread gives me the impression that many do not understand how to deal with these market conditions. Would that be a fair estimation?

If not, why didn’t people making comments on this thread holding long positions use protective strategies like buying puts or selling their shares to ameliorate any bearish moves if they had a bearish estimation of the market? (Of course long term holders have a long term view, and that is a different matter – but protection still would have been a viable course of action, wouldn’t it?).

Furthermore, if a person held the view that there were bearish probabilities why wouldn’t they have taken bearish positions in the market and take advantage of the downward movement? I’d suggest that you can make very good profits from the short side of the market (often much more quickly than bullish strategies).

I have held no long positions this month in ASX optionable stocks (I only trade options available from the optionable stocks for the ASX – no small caps/shares). Perhaps there were a couple of longs to be had, but by far all I could see were shorts. Am I the odd person out here?

No I'm similar

I predominatly short trade and with the channels.

My stops on my oilers got hit a few days back, I left them till today and took the punt. Still a bit sus on oilers at the moment though!

I did have a few longs in place with trailing stops that had been progressively moved up as I thought the SP had a bit more run (KZL,BSG,BDG,PDN,ZFX,MRE). these got hit yesterday and I sold. I didn't make the highs but I certainly took some decent profits.

I bought straight back into the same stocks today though.

Magdoran · 13 September 2006

Freeballinginawetsuit said:
No I'm similar

I predominatly short trade and with the channels.

My stops on my oilers got hit a few days back, I left them till today and took the punt. Still a bit sus on oilers at the moment though!

I did have a few longs in place with trailing stops that had been progressively moved up as I thought the SP had a bit more run (KZL,BSG,BDG,PDN,ZFX,MRE). these got hit yesterday and I sold. I didn't make the highs but I certainly took some decent profits.

I bought straight back into the same stocks today though.

Ahhh, Good to see!

Luke6450 · 13 September 2006

Magdoran said:
Funny, Luke6450,

I thought you were using the “famous” Darvas system aren't you? Why don’t you just following your system’s rules?

Yeah I am using the darvas system and i am following the rules. But if the market keeps going down it is going to force me out of a lot of shares... Nice improvement today though ... Bring on the upward trend!

Dutchy3 · 13 September 2006

XJO is taking a rest ... has been for months.

Trading since the end of May indicates a narrowing band to me ... given the fact that this band is on the wrong side of the top and the way in which the market has retreated from 5150 is not bullish for the rest of the calender year.

Volumes are drying up too... need volumes to substantially increase to power onto new highs from here.

twojacks28 · 13 September 2006

this doesnt apply all the time but usually when the school holidays on the market goes down.this is just a general statement as many families go away for a few weeks and dont bother bout trading while they are away.

Magdoran · 13 September 2006

Luke6450 said:
Yeah I am using the darvas system and i am following the rules. But if the market keeps going down it is going to force me out of a lot of shares... Nice improvement today though ... Bring on the upward trend!

Will your system identify shorting opportunities?

Bobby · 14 September 2006

Magdoran said:
Will your system identify shorting opportunities?

Magdoran

Realist · 14 September 2006

All's well that ends well. ASX seems to be recovering nicely.

Although I will not be too confident until the end of October.

Julia · 14 September 2006

Realist said:
All's well that ends well. ASX seems to be recovering nicely.

Although I will not be too confident until the end of October.

So, Realist, are you forecasting we will zap back into everything being hunky dory from November on????

Julia

Realist · 14 September 2006

Julia said:
So, Realist, are you forecasting we will zap back into everything being hunky dory from November on????

Julia

Yes I am funnily enough. I said months ago September and October will be rocky, and November onwards should be good - history shows that is usually the case. That is my guess anyway.

But what do I know?

YOUNG_TRADER · 14 September 2006

Whats troubling me is that the XAO and XJO didn't really and haven't really made any significant gains since May correction,

ie XAO has failed to break above 5100 and hold properly twice now = Double Header, if it had an it ran up a bit more to say 5200 or so then another Sept/Oct Correction would be ok so long as it fell back to 5100 support line, instead we've been ranging sideways which has me very suprised (although a few on here were calling sideways for a few months)

But whats most interesting is that the DJIA in the US has been hitting the highest levels since after the correction, ie it seems to be getting ready to test those May highs Last: 11,543.32 Change: +45.23 +0.39% Volume: 214,190,218

But I have been pretty unaffected this time round which is a good thing (Glad I offloaded BMO @29c and CBH @ 50c )

Market took a hammering today

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