1. Most Discussed
  2. Gainers & Losers

Stops tripped yesterday ... where to ???

  1. rembrandt

    5,794 posts.
    Hmmm... no doubt the US market in 'resignation phase' following yet another scandal .. Quest Communications under criminal investigation by US Justice Debt ... 32% tanking just another log on the fire of corporate America ... and enough to trigger selling malaise ...

    NWS led modest 1.14% lower and NCP holding up well considering although down again ... stops triggered yesterday as upside failed Fib(23.6%) for the second time and most LONG would have exited ... those who entered early would have preserved modest green ... no shame in this.

    Reported Monday major July derivatives positions ranging between $11.00 (calls) and $10.00 (puts) and impending expiries could suffer under insto pressure to protect these ... resetting 26/07/02 for the August in the $11-$13.00 range give a hint.

    Bears always shorten their horizons to news at the moment and will fail to recognise 'resignation phase' of US market signals positive for bulls ...

    Recent LONG call for NCP was a good call ... and worth the effort to get set ... without negative US news ... most derivatives traders would now be close to a nice collect ...

    This IMHO along with US situation suggests NCP might be best viewed from the bench to clear July expiries and await market developments as the likelihood NCP will range as suggested above and NEUTRAL short-term in my view.

    This is not to say that NCP won't move either way, just that no signal either way given recent events ... alert watch between now and July expiry for next LONG entry ...

    Defence trading strategy .. early entries and tight stops ... no shame eating like chickens ... trading the bear is good practice.

    Chart looks like this...


    This is only my view ... read the red stuff.











DISCLAIMER:
Before making any financial decisions based on what you read, always consult an advisor or expert.

The HotCopper website is operated by Report Card Pty Ltd. Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, you should before acting on the information or advice, consider the appropriateness of the information or advice in relation to your objectives, financial situation or needs. Please be aware that any information posted on this site should not be considered to be financial product advice.

From time to time comments aimed at manipulating other investors may appear on these forums. Posters may post overly optimistic or pessimistic comments on particular stocks, in an attempt to influence other investors. It is not possible for management to moderate all posts so some misleading and inaccurate posts may still appear on these forums. If you do have serious concerns with a post or posts you should report a Terms of Use Violation (TOU) on the link above. Unless specifically stated persons posting on this site are NOT investment advisors and do NOT hold the necessary licence, or have any formal training, to give investment advice.

Top