Anomalies
I heard on the radio this morning that the last time the Dow had such an extended rally of up, up, up (what is it, 21 out of 24 days?) was when Rock Around the Clock was popular, 52 years ago in 1955. Oh, BTW, isn’t it true that because of that song, since the 1950s greater than 90% of Americans mispronounce the name of Halley’s Comet? (Sir Edmund’s last name is correctly pronounced the same as Halle Berry’s first name).
(Update: On the 1000 EST outro, CNBC noted this song too. Someone there must listen to NPR as well.)
And this type of extension happens about as often as that comet comes around. Is the rubber band about sixfold overdue to snap back? How many times has the S&P closed below its 10-day moving average in the last month? Are the people furiously shorting this rally brilliant or are they complete idiots? Testicles the size of melons or marbles missing upstairs?
When assumptions based on historical “evidence” utterly fail (the market “never” does this and home prices “never” go down), then what? Crazy to short against such strength? Even crazier to buy into such overbought-ness?
LP, in response to that last comment, you’re exactly right. I’ve had to work 15 out of the last 17 days, and the other two I was driving my three princesses (and one of their ICK! boyfriends) to Dallas for two fun, painful days at Six Flags. A few rounds on rides like The Titan give the old man a 3-day backache. Today is my first “real” day off, and I’m hoping to get in a daytrade or two, between cups of coffee and ibuprofen.
Sara said,
May 4, 2007 @ 7:14 pm
Just checking in oh and i have a question how do you make your own webpage, like dummyspots how do you make them?
Sara said,
May 4, 2007 @ 7:23 pm
yup and boy was the superman fun!!Ty for taking us. your E-Mail thing wasn’t working so i am leaving you two comments, one a question one uh that doesn’t have a question :). Well love ya ttyl.
P.S:For ppl who don’t know what ty, ttyl, and ppl are they are ( in order ) thank you, Talk to you later, and people.
P.S.S for dad NOT readers but anyways: that kid at Fisherwill.com at the top on the very right is very very cute!!
Will said,
May 4, 2007 @ 9:51 pm
Hey Sweetie! Thanks for visiting the “boring” website
I know you have enjoyed the others more, but the “old people” like this one too! Yes, those kids on the other site are all three just as cute as can be, especially the young, sassy one!
If you like, we’ll start working on your own site whenever you want!
-Dad
QUIKTDR said,
May 7, 2007 @ 9:29 am
A general question. In the event one receives a buy signal from a specific candle formation and the enter signal would be the high above that candle, how long (how many bars) would this signal be in force?
Will said,
May 9, 2007 @ 10:42 am
QUIKTDR - A completed (confirmed) candle formation, for me at least, serves only as a trade *entry* trigger. I set my initial stop, then trail the stop from there based on the type of trade I’ve just entered (quick in-and-out or longer-term).
The length of the trade is determined more by the context of the entry within the overall chart than the immediate candle formation- for example, a short setup in a stock that’s trending strongly upward will likely just be a quick pullback into that uptrend, and may only last a few bars. For those trades, I trail my stop quickly and aggressively.
If I’m entering in the direction of the larger trend, say going long after a pullback in the above example, I anticipate a longer trade, and trail a wider, slower stop.
For me, candlestick formations give a strong entry point, initial stop and directional signal, but the actual duration of the trade is more related to the underlying chart.
Thanks for the question!