Like many other traders I like to see bottoms made late in the day after several hours of what feels like endless selling. We've got an early run today which is getting close to the resistance of the last several days. Will the market roll over again at those levels? I don't know but I won't be surprised if it does. Anyway, here are some things that I read this morning that may be worth a look:
- List of Challenges for Short Sellers Keeps Growing Longer - Shorting is tough but it can also be lucrative. Some of my biggest winners over the last couple of years were on shorts.
- Stephen calls Monday's action a bull trap and lays out a scenario for a Friday climax. He also talks about what will make him (more) bullish on the market -- Price. (I was LOL when I read that 'you buy first' comment. I feel ya on that Stephen!)
- Jon, the 'Fickle Trader' ponders when oversold becomes too oversold. I have to agree that I'd rather look to sell rallies in this market instead of buying dips.
- Morningstar has a piece about finding your investing edge.
- Dave Landry has miraculously found some very bullish charts. :-)
- If you want to try out Yahoo! 360, Jeremy is giving away invitations. You can get an idea of what Yahoo 360 is by checking out Jeremy's 360 page. I'm tempted to try it out but I've already got way too many web sites.
Update: Dave informs me that he's giving Yahoo 360 invites away as well. You may get quicker response from him vs. Jeremy, who's gotten hundreds of requests. You can contact Dave at dmabe [at] runningland [dot] com.
And that reminds me, I keep forgetting to post a link to the Stock Charts FireFox extension that Dave wrote. Here's Dave's description of what it does:
I created an extension that lets you select muliple ticker symbols in a web page seperated by spaces or commas (or both) and then open a tab with a stock chart for each one. By default, you can choose from stockcharts.com, yahoo.com, or bigcharts.com. You can customize these or add your own.
Yahoo 360 looks pretty cool. If any one wants an invite, let me know. dmabe [at] runningland [dot] com.
Mike:
Just as you put up the link, I was updating my extension to a new version. I also updated the URL :-(. Can you change it to http://dave.runningland.com/2005/03/23/stock-charts-firefox-extension/
Thanks!
Done
Mike,
I am a friend of your brother Tony, and I follow your site regularly. I am trying to educate myself more about trading and investing, so that I can take more responsibility and control over my financial future.
Anyway, I had a question about shorting. Can you short using a self-directed retirement account such as a Roth. If so, then the significant tax implications for shorting are eliminated.
Thanks
Stuart
Stuart,
You need a margin account to short stocks, so as far as I know you can't do so in IRAs. I think I 've heard of people trading options in retirement accounts, so that might be a way to make bearish bets on the market. But don't quote me on that. Also there are some 'bear' or 'inverse' mutual funds that you can buy in an IRA. See the USPSX, USPIX, or RYVNX for some examples (Those are Yahoo Finance tickers)