MysteryTrader's Commentaries
Oct
26
2006
Sell on the Good News
by MysteryTrader
Overall Rating:
So earnings are beating Wall Street estimates, Fed policy is less hawkish, the economy is a Goldilocks (not too hot, not too cold, but just right), and stock prices are in a steady uptrend. For the bulls, it is the best of all possible worlds. In the contrary logic of trading, that can only mean one thing: SELL!
Ok, so shorting since June has been a disaster. So what? That is the past, and it is too late to capitalize on the past. No tree grows to the sky, no uptrend lasts forever, and corrections are not against the law, well, not yet anyway.
I am going to try the short side again—and, of course, I will cut loss quickly if it doesn’t work out. I am talking trading strategy for aggressive traders, not conservative investors.
Tags: economic-events
