5/21/2010 premkt | Bulls on Wall Street

5/21/2010 premkt

 
Futures pointing toward nasty open…we are off our lows but still not good.  We are also not gapping down far enough to get the swoosh where a supreme dip opp exists. Right now we are in drip drip mode…slowly sucking away the will of traders day by day little by little.  Everyday you have hope tomorrow is the bounce day..and you lose 5% of each holding little by little till your down 50%.  This is why i keep hammering keep 50% cash …..sell all spikes….  I too have taken losses…not good ones either! but with a big cash position my losses are mitigated and just apart of the game.
 
We are gonna have nasty volality the next few days. Nasty.  The bulls and bears are in a nasty fight now.  Is this a typical 10% correction that every huge bull market has. Or is this a trend change.  I have a feeling with this open we are gonna see some cascading selling that could finally see some panic selling where people give up and are getting their margin calls.  A reversal is in the works here if we can get it but only after an excrutiating amount of pain….  the kind where hope is lost.
 
This stype of trading is for traders with tons of SAC. strong stomachs….  otherwise its best to sit on the sidelines and wait.   The type of action im seeing says this is not just a regular 10% pullback within a trend as this pullback came quickly and swiftly….this is not a dip but a straight vertical drop.
 
This market is not for swingtraders as the volaitily will nail you and stop you out everytime. Trading in bearish trends is nearly impossible for the average swingtrader.  The swings are wider… The stops all gunned by MMs.
 
Support means nothing during certain moments.. Just as in the bull we were buying PreBreakout because resistance means nothing in a bull.
 
 
This is a daytrader/scalper market.  UNLESS you are swinging just the huuuuge extremes. Thats it.  Extremes up and down but you’ve got to really nail it.
 
We will be in the boom factory… I will make myself available by email Lets work together.  There is money to be made…we just have to be perfect. 

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