Interdum stultus opportuna loquitur...

Tuesday, September 20, 2005

NightRant: US Market Higher, As Requested...

Note - from June 24th 2009, this blog has migrated from Blogger to a self-hosted version. Click here to go straight there.

I know I harp on about the 'forgiving' nature of the 'fade' method of trading (i.e., selling overbought and buying oversold, once a stringent set of criteria are met) , but I feel it's necessary to hammer it home... mostly because most people find it really hard to buy declines and sell rallies.

Seriously - even when it's as plain as day, with loads of forewarning, a lot of people are very uncomfortable trying to run against what seems to be a mounting tide. But in fact, the time that seems like the most stupid time to short, is usually the smartest time to short. What looks like the dumbest time to be a buyer is actually the smartest time to be a buyer.

This morning's USRant made it clear that the best expectation following the prior day's CCI divergence was for the market to continue UP:

...and tomorrow will see a follow-through from the last half-hour's bounce (and there's a good chance that the bounce will start during the overnight Globex session)

And at the moment the Dow is challenging 10590 - recall that yesterday's FIRST 'buying' divergence (the one that was 'not quite right) was at 10573-ish. So even if you were an excessively eager young beaver, you still got a 'get out of jail with a slight profit' card as of this moment.

A final note: tehre won't be a USRant tomorrow until after lunch (Australian time).