Ham fisted market manipulation attempts like this little pop are a great place to add to your positions. Low risk/ high probability. Keep in mind the original trend, but take profits as they present themsleves when the momentum slows.
ABX(gold) tells the true story at the moment.
Not much market volume on that fake out pop.
SKF
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In addition to many other things I have learned from your blog, spotting "misdirection/manipulation" is one for which I am starting to look. I have problems with separating choppiness from trend and this may help me differentiate the two. The first step in combating it is the awareness that manipulation happens. Thanks for the info... as always.
Also, Scott. I look closely at your entries and exits. I notice that your stops are very tight, tight enough that the stop price often obscures the entry price on the chart. What are you using roughly as a stop these days. Last fall during the crazy times, you seemed to be using $300 to $400?
Stuff is so cheap now compared to last fall. A lot of the plays nowadays have a .01 spread so it's EZ to set a tight stop and keep losses small. I've adapted to the market conditions and just buy larger quantities, say 5k of MS at $28 as opposed to 1k of SKF when it was $150-$200
I was wondering if a guy with your record of success was still playing only 1000 shares at a time... my suspicion was "no way." Ha! :-)
I checked out your band and some of the music. Nice... seems like it is taking off, based on some of your gigs and the fact that you come East to play.
Ya, we are playing a number of festivals this summer. Should be fun....
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