Comments on: When Bulls Become Sellers http://www.thestockbandit.net/2007/03/01/when-bulls-become-sellers/ Trading blog with trading insights, discussion on swing trading, day trading, and trading psychology. Thu, 24 Jul 2008 14:29:29 +0000 http://wordpress.org/?v=2.0.9 by: Remember Your Trading Objective | TheStockBandit.net http://www.thestockbandit.net/2007/03/01/when-bulls-become-sellers/#comment-35014 Tue, 13 Nov 2007 14:32:04 +0000 http://www.thestockbandit.net/2007/03/01/when-bulls-become-sellers/#comment-35014 [...] But nimble traders aren’t the ones suffering. The part-time traders are. Obviously any bull lately has suffered some pain, but that’s not what I’m referring to. I’m talking about the traders who aren’t quick on the keys, the ones who are just trying their hand at some dip buying. They don’t realize the sheer panic of so many other market participants which they’re buying in the face of. They don’t realize that even on a bounce bulls can become sellers. There’s a lot of supply just waiting for a chance to get liquidated once some relief comes along and higher prices are seen, and that’s precisely what can bring the pain to the uneducated part-timer. [...] […] But nimble traders aren’t the ones suffering. The part-time traders are. Obviously any bull lately has suffered some pain, but that’s not what I’m referring to. I’m talking about the traders who aren’t quick on the keys, the ones who are just trying their hand at some dip buying. They don’t realize the sheer panic of so many other market participants which they’re buying in the face of. They don’t realize that even on a bounce bulls can become sellers. There’s a lot of supply just waiting for a chance to get liquidated once some relief comes along and higher prices are seen, and that’s precisely what can bring the pain to the uneducated part-timer. […]

]]> by: Welcome Barron’s Readers! | TheStockBandit.net http://www.thestockbandit.net/2007/03/01/when-bulls-become-sellers/#comment-34598 Sat, 10 Nov 2007 17:16:12 +0000 http://www.thestockbandit.net/2007/03/01/when-bulls-become-sellers/#comment-34598 [...] A few articles on trading psychology… *Slay Your Trading Giants *Trading Discipline *How Gaps Change Motivations in the Market *When Bulls Become Sellers *The 2nd Worst Feeling in Trading *My Biggest Trading Fear *3 Signs Your Have a Pet Stock *Gap Lessons: When Trades Get Lucky [...] […] A few articles on trading psychology… *Slay Your Trading Giants *Trading Discipline *How Gaps Change Motivations in the Market *When Bulls Become Sellers *The 2nd Worst Feeling in Trading *My Biggest Trading Fear *3 Signs Your Have a Pet Stock *Gap Lessons: When Trades Get Lucky […]

]]> by: Not A Dip-Buyer’s Market | TheStockBandit.net http://www.thestockbandit.net/2007/03/01/when-bulls-become-sellers/#comment-19222 Wed, 01 Aug 2007 15:37:40 +0000 http://www.thestockbandit.net/2007/03/01/when-bulls-become-sellers/#comment-19222 [...] But things have changed. Stocks have been punished lately, and the swagger of the bulls has disappeared. They’re not eager to provide support, and instead they seem to be getting more spooked. Dips have become all-out selloffs, and the buyers are nowhere to be found. In fact, even the bounces have been brief, as bulls become sellers and jump quickly to unload shares into any strength as they seek to raise cash levels. Concerns are running high. [...] […] But things have changed. Stocks have been punished lately, and the swagger of the bulls has disappeared. They’re not eager to provide support, and instead they seem to be getting more spooked. Dips have become all-out selloffs, and the buyers are nowhere to be found. In fact, even the bounces have been brief, as bulls become sellers and jump quickly to unload shares into any strength as they seek to raise cash levels. Concerns are running high. […]

]]> by: Showdown Shaping Up | TheStockBandit.net http://www.thestockbandit.net/2007/03/01/when-bulls-become-sellers/#comment-18777 Mon, 30 Jul 2007 00:38:40 +0000 http://www.thestockbandit.net/2007/03/01/when-bulls-become-sellers/#comment-18777 [...] It’s a tough time to initiate new shorts after last week’s carnage, but a relief rally could be a short-lived event if bulls become sellers at higher levels. Be sure to check out this week’s Market View page over at TheStockBandit.com before you start your trading week for a closer look at the indexes along with more of my comments. We moved to cash last Tuesday morning to let the market correct without us, but once the volatility settles down a bit in the coming days we’ll be looking to catch some great opportunities. [...] […] It’s a tough time to initiate new shorts after last week’s carnage, but a relief rally could be a short-lived event if bulls become sellers at higher levels. Be sure to check out this week’s Market View page over at TheStockBandit.com before you start your trading week for a closer look at the indexes along with more of my comments. We moved to cash last Tuesday morning to let the market correct without us, but once the volatility settles down a bit in the coming days we’ll be looking to catch some great opportunities. […]

]]> by: TheStockBandit.net » Downside Damage Creates Opportunities http://www.thestockbandit.net/2007/03/01/when-bulls-become-sellers/#comment-5642 Tue, 13 Mar 2007 23:44:52 +0000 http://www.thestockbandit.net/2007/03/01/when-bulls-become-sellers/#comment-5642 [...] Since then, only short sale candidates have been listed in the Bandit Broadcast newsletter because of the obvious change in character of the market. I discussed this recently here on the blog, highlighting the reasons why the shift in psychology left more than technical resistance overhead. [...] […] Since then, only short sale candidates have been listed in the Bandit Broadcast newsletter because of the obvious change in character of the market. I discussed this recently here on the blog, highlighting the reasons why the shift in psychology left more than technical resistance overhead. […]

]]> by: TheStockBandit http://www.thestockbandit.net/2007/03/01/when-bulls-become-sellers/#comment-5458 Sun, 04 Mar 2007 19:24:54 +0000 http://www.thestockbandit.net/2007/03/01/when-bulls-become-sellers/#comment-5458 Hey Ram, Thanks for your comments. I do see the expanding triangle (or megaphone) pattern shown in the article you linked to, and like you I do believe this correction has legs. Technical analysis works better for price projections in the short term in my opinion. A correction down to 1750 would take a number of months, and a correction of that timeframe could entail so many other factors that it is just hard to say. I would be surprised to see a correction carry that far, but for now I do think that rallies will be sold in the coming weeks and that we'll see lower prices over the next couple of months at least. But I do not yet see this correction developing into something that will shave off an additional 26% off the Nasdaq from current levels. I'm in no hurry to buy and want to see this pullback fully materialize before returning to a net-long status, but right now I just think this is the start of a needed correction (there have been none since last summer) which will keep the long-term uptrend intact that began in '02. A correction to 1750 would return us to the Aug. '04 low, and I just think it's too early to see a move playing out to that magnitude. Jeff Hey Ram,

Thanks for your comments. I do see the expanding triangle (or megaphone) pattern shown in the article you linked to, and like you I do believe this correction has legs.

Technical analysis works better for price projections in the short term in my opinion. A correction down to 1750 would take a number of months, and a correction of that timeframe could entail so many other factors that it is just hard to say. I would be surprised to see a correction carry that far, but for now I do think that rallies will be sold in the coming weeks and that we’ll see lower prices over the next couple of months at least. But I do not yet see this correction developing into something that will shave off an additional 26% off the Nasdaq from current levels.

I’m in no hurry to buy and want to see this pullback fully materialize before returning to a net-long status, but right now I just think this is the start of a needed correction (there have been none since last summer) which will keep the long-term uptrend intact that began in ‘02. A correction to 1750 would return us to the Aug. ‘04 low, and I just think it’s too early to see a move playing out to that magnitude.

Jeff

]]> by: Ram Lau http://www.thestockbandit.net/2007/03/01/when-bulls-become-sellers/#comment-5456 Sun, 04 Mar 2007 15:51:17 +0000 http://www.thestockbandit.net/2007/03/01/when-bulls-become-sellers/#comment-5456 Hi Jeff, So I had a conversation on another stock blog. The blog owner Dr. Roberts sees an intra-year collapse to 1750 as probable: http://marketbarometer.blogspot.com/2007/03/megaphone-top-on-nasdaq-composite.html What do you make of that? By the way, I'm one of the bulls who turned into bears during the week as you described. The Friday session confirmed that this correction has legs. Hi Jeff,

So I had a conversation on another stock blog. The blog owner Dr. Roberts sees an intra-year collapse to 1750 as probable:

http://marketbarometer.blogspot.com/2007/03/megaphone-top-on-nasdaq-composite.html

What do you make of that? By the way, I’m one of the bulls who turned into bears during the week as you described. The Friday session confirmed that this correction has legs.

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