One Last Thing

 I am tempted to get shorter but want to save some fire power in case we get a better than expected number tomorrow morning. At that point I would be willing to move from a medium to large net short position.

5 comments:

Chaos! said...

I agree with you that sentiment is fairly rosy, although both weekly sentiment polls were less bullish this week, but the powerful action in financials has me perplexed. I don't recall a selloff when the financials were rallying. While I anticipate a selloff I can't do much til the financials cease their outperformance.

David said...

read the blog. wondering if you ever trade using the daily RSI, if so which is best 7, 14, 21. I put a short on HUM today at 48.08 as the RSI for all three hit 70. Thanks, Dave

PJ said...

Great call on the unemployment data, Tsachy.

If people conclude that the government has run out of room to plausibly manipulate data upward, we could see a cascade of selling. This is the first payroll report since early spring that wasn't better than the ADP data.

Tsachy Mishal said...

David, I don't. D o you find it helpdul? How do you use it?

David said...

my friend trades for a living so i asked him if there was something simple that helps him time trades. he said that the daily RSI is helpful. when it hits 70 you sell or go short, when it hits 30 you go long. like most indicators it is not a lock (things can keep running in either direction), but so far I have found it useful especially for stocks I know well or have some confidence that fundamentals also supportive of teh direction the RSI is indicating. The 7 day is more sensitive than the 14 day (ie will give more signals more often)