Comments on: Reversal and a Follow-Through Day http://www.chrisperruna.com/2008/03/12/reversal-and-a-follow-through-day/ A blog about trading, finances, success and life itself Fri, 30 Dec 2011 14:18:33 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: chrisperruna.com » Blog Archive » Follow-through Head Fake http://www.chrisperruna.com/2008/03/12/reversal-and-a-follow-through-day/comment-page-1/#comment-17408 chrisperruna.com » Blog Archive » Follow-through Head Fake Wed, 19 Mar 2008 12:35:16 +0000 http://www.chrisperruna.com/2008/03/12/reversal-and-a-follow-through-day/#comment-17408 [...] and 10-to-3 on the NASDAQ. The DOW was up 3.5% with the NASDAQ up 4.2% making it seem like we had a follow-through but volume was lower. Besides, the NASDAQ violated the reversal range intraday on Friday and then [...] [...] and 10-to-3 on the NASDAQ. The DOW was up 3.5% with the NASDAQ up 4.2% making it seem like we had a follow-through but volume was lower. Besides, the NASDAQ violated the reversal range intraday on Friday and then [...]

]]> By: Sriram http://www.chrisperruna.com/2008/03/12/reversal-and-a-follow-through-day/comment-page-1/#comment-17360 Sriram Mon, 17 Mar 2008 18:46:35 +0000 http://www.chrisperruna.com/2008/03/12/reversal-and-a-follow-through-day/#comment-17360 Chris, I am curious to see how you use option PUT to trade any down trend stocks. Can you post an article on how you handle your short candidates using PUT strategy? Thanks Chris,

I am curious to see how you use option PUT to trade any down trend stocks.

Can you post an article on how you handle your short candidates using PUT strategy?

Thanks

]]> By: Janet http://www.chrisperruna.com/2008/03/12/reversal-and-a-follow-through-day/comment-page-1/#comment-17324 Janet Fri, 14 Mar 2008 22:00:24 +0000 http://www.chrisperruna.com/2008/03/12/reversal-and-a-follow-through-day/#comment-17324 That's what makes you a good trader, the trend is definitely saying down. I don't short stocks so I'm always looking for a bottom. That’s what makes you a good trader, the trend is definitely saying down. I don’t short stocks so I’m always looking for a bottom.

]]> By: Chris http://www.chrisperruna.com/2008/03/12/reversal-and-a-follow-through-day/comment-page-1/#comment-17322 Chris Fri, 14 Mar 2008 12:58:22 +0000 http://www.chrisperruna.com/2008/03/12/reversal-and-a-follow-through-day/#comment-17322 Janet, Time will tell. I will trade the charts; that's all I can do. I don't have an opinion on where the market is going (up or down) nor do I care - I just want a trend. I will follow it, not guess. Janet,
Time will tell. I will trade the charts; that’s all I can do. I don’t have an opinion on where the market is going (up or down) nor do I care – I just want a trend. I will follow it, not guess.

]]> By: Janet http://www.chrisperruna.com/2008/03/12/reversal-and-a-follow-through-day/comment-page-1/#comment-17315 Janet Fri, 14 Mar 2008 03:58:24 +0000 http://www.chrisperruna.com/2008/03/12/reversal-and-a-follow-through-day/#comment-17315 Yea, I can see the difference there but that correction was due largely to the tech bubble. I don't think we are in any type of bubble like that. That kind of correction comes (IMO) around every 10 years or more. (IMO) the norm is more quick corrections and the resumption of up-trend. We shall see, anyway, for what it's worth that is what I think. Thanks Yea, I can see the difference there but that correction was due largely to the tech bubble. I don’t think we are in any type of bubble like that. That kind of correction comes (IMO) around every 10 years or more. (IMO) the norm is more quick corrections and the resumption of up-trend. We shall see, anyway, for what it’s worth that is what I think. Thanks

]]> By: Chris http://www.chrisperruna.com/2008/03/12/reversal-and-a-follow-through-day/comment-page-1/#comment-17314 Chris Fri, 14 Mar 2008 03:03:42 +0000 http://www.chrisperruna.com/2008/03/12/reversal-and-a-follow-through-day/#comment-17314 Janet, The DOW corrected more than 35% prior to the 2003 reversal and follow-through. The current DOW is down 14%, less than half the significant correction in 2001 and 2002. The NASDAQ dropped 76% prior to the 2003 reversal and follow-through. The current NASDAQ is down 20%. That is where I get significant from versus today's market. Besides, the market has only trended down for 4 months. Downtrending markets head lower for years. Maybe the market will go higher but the current trend on a longer term scale is down. It may be up short term but what do I care about the small moves. Janet,
The DOW corrected more than 35% prior to the 2003 reversal and follow-through. The current DOW is down 14%, less than half the significant correction in 2001 and 2002.

The NASDAQ dropped 76% prior to the 2003 reversal and follow-through. The current NASDAQ is down 20%.

That is where I get significant from versus today’s market. Besides, the market has only trended down for 4 months. Downtrending markets head lower for years. Maybe the market will go higher but the current trend on a longer term scale is down. It may be up short term but what do I care about the small moves.

]]> By: Chris http://www.chrisperruna.com/2008/03/12/reversal-and-a-follow-through-day/comment-page-1/#comment-17313 Chris Fri, 14 Mar 2008 02:57:27 +0000 http://www.chrisperruna.com/2008/03/12/reversal-and-a-follow-through-day/#comment-17313 Brad, Thanks for the link but I only trade my data, not opinions from others. This is not to attack another trading style but I only trust my own research and developed systems. They have worked for worked for many years (long and short). Brad,
Thanks for the link but I only trade my data, not opinions from others. This is not to attack another trading style but I only trust my own research and developed systems. They have worked for worked for many years (long and short).

]]> By: Janet http://www.chrisperruna.com/2008/03/12/reversal-and-a-follow-through-day/comment-page-1/#comment-17300 Janet Thu, 13 Mar 2008 02:57:02 +0000 http://www.chrisperruna.com/2008/03/12/reversal-and-a-follow-through-day/#comment-17300 Hi Chris..Why do you say we have not had a significant correction?? The markets have been pounded relentlessly for months now. Personally, I think it is time to do some buying. Hi Chris..Why do you say we have not had a significant correction?? The markets have been pounded relentlessly for months now. Personally, I think it is time to do some buying.

]]> By: Chris http://www.chrisperruna.com/2008/03/12/reversal-and-a-follow-through-day/comment-page-1/#comment-17289 Chris Thu, 13 Mar 2008 00:50:58 +0000 http://www.chrisperruna.com/2008/03/12/reversal-and-a-follow-through-day/#comment-17289 Thanks Bill! Paul, I agree that GTLS is one of the few decent looking charts to the long side. Thanks Bill!

Paul,
I agree that GTLS is one of the few decent looking charts to the long side.

]]> By: Brad http://www.chrisperruna.com/2008/03/12/reversal-and-a-follow-through-day/comment-page-1/#comment-17285 Brad Wed, 12 Mar 2008 22:08:40 +0000 http://www.chrisperruna.com/2008/03/12/reversal-and-a-follow-through-day/#comment-17285 Over the past 20 years, such a blast has been seen five times: Oct. 20, 1987, April 5, 2001, Sept. 24, 2001, July 24, 2002 and Oct. 10, 2002. That's some pretty distinguished company -- each and every one of them marked the end of intermediate-term declines. The average two-week return was 6.7%, with none of them showing a return less than 3.9%. Over the past 20 years, such a blast has been seen five times: Oct. 20, 1987, April 5, 2001, Sept. 24, 2001, July 24, 2002 and Oct. 10, 2002. That’s some pretty distinguished company — each and every one of them marked the end of intermediate-term declines. The average two-week return was 6.7%, with none of them showing a return less than 3.9%.

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