Thursday, May 10, 2012

Deception and Training

People have recency bias.
 I believe this is hardwired.
It is hard to get around.

When the tape get whippy and rampy like this, people get stopped out of positions, 2 or 3 times, then they reduce their position size or tighten stops even tighter, or they sit out.

The market has "classic deception" moves and setups.

We are in one of them.

I predict the move is down big on US equities.

As per MarketSniper--The Market will act so as to cause you to act against your best interest.

Don't be deceived.

3 comments:

  1. Agreed Steveo, market looks like it is shaping up for a nasty downturn.

    Checkout this candlestick interpretation of one of the volatility indicies...

    http://whatisthatwhistlingsound.blogspot.ca/2012/05/possible-bullish-candlestick-pattern.html

    ReplyDelete
  2. I don't know man...look at the put/call. The Fed money is still flowing and put/call is very, very high right now. If there is a down move, I think it'll be a quick hit, followed by a massive short squeeze.

    ReplyDelete
  3. Thanks for the heads up.   Been to busy to view my put call indicators.    Actually all of them are implying bullish, I will post later..

    ReplyDelete

Insightful and Useful Comment!