posted by Trader No 1 on Oct 13
OK, the activities of our beloved Indices have been nothing short of spectacular over the past few days but is this down to the sort of activity that most pundits reckon it is? That is to say, are all our problems sorted and are we all about to set sail happily forever forward into a new Bull Run?
Nah, we didn’t think so either. All of us here at the TWCS Office reckon in the first instance that you should seriously expect and beware the so called “Dead Cat Bounce” and expect a fair amount of Profit taking over the next 24 hours as Traders try and gauge in their own minds exactly what they think has happened and in these instances the first thing they do is protect and lock in profits first. So please, please, paleeeeeese no open long positions left unattended. Quite beyond the fact that we feel this is seriously against TWCS Rule No 1, in the present climate this would be extremely unwise as the markets have shown themselves to be extremely unpredictable and to be honest this current situation has, we think, more to do with the “last stage thrashes” of the current Bear market rather than a straight forward start of a new Bull Run.
The only thing that baffled us here in TWCS Land was the complete lack of any form of last minute sell off in New York last night with the DJIA steaming upwards right through the close. Not even a last minute little 10 minute “twitch” and slippage of a 100 points or so which I must confess caught a few of us off guard but hey nobodies perfect.
Either way we don’t care what sort of direction the Indices take over the next few days or so do we TWCS’s, do we, as long as it is moving in one direction or another and there are opportunities for profitable trades up or down?
Usual drill, keep your powder dry, stay safe and your back covered at all times.
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