….and 'newbies' shouldn't be taking 'big' positions of ANY kind (other than cash)…..even 'oldbies' are well advised toenter a trade gradually as it performs as expected, exiting rapidly if it does not.
Point taken will heed! Sorry i meant $70 – wish i knew how to post charts here it would be much easier but ive got rising parallel trendlines for CAT bottom is at @$60.88 and top at@$70 because we had shot so low beneath the bottom i thought it was heading south but from what Leo says it sounds more like going to $70
Firstly, what I think is big vs what you think is big does not matter. If you're the trader & it feels big to you, then IT'S BIG. So please go back & review my first piece of advice(this is some painful experience talking here). Enter the position slowly, adding to winners.
re: top of Trendline @ 7000, you HAD been talking about CAT. Are you now talking about the Dow? I'm assuming Dow – my long-term objective is probably around 4500 or lower…….UBER Bear here.
….and 'newbies' shouldn't be taking 'big' positions of ANY kind (other than cash)…..even 'oldbies' are well advised toenter a trade gradually as it performs as expected, exiting rapidly if it does not.
Looking at the chart, it looks like it's ready for a bounce, as it just hit the 200dma. That candle from yesterday shows indecision. I wouldn't go short unless it closes today below yesterday's low.
That would be a conformation of a lower move to come. You also have about 6 days down in a row. That tells me that it should bounce back up from here. Look at the previous times it fell 4-6 days… it bounced.
I wouldn't go short at this point. Too oversold, and hasn't confirmed a break of the 200dma. It's needs 2 days in a row closing below it, with the 2nd day closing below the low of the 1st day.
Great Post Red!
….and 'newbies' shouldn't be taking 'big' positions of ANY kind (other than cash)…..even 'oldbies' are well advised toenter a trade gradually as it performs as expected, exiting rapidly if it does not.
No specific opinion – I'm more of a macro conviction sort of guy and I'm bearish the world….but Good Luck!
Point taken will heed!
Sorry i meant $70 – wish i knew how to post charts here it would be much easier but ive got rising parallel trendlines for CAT bottom is at @$60.88 and top at@$70 because we had shot so low beneath the bottom i thought it was heading south but from what Leo says it sounds more like going to $70
Firstly, what I think is big vs what you think is big does not matter. If you're the trader & it feels big to you, then IT'S BIG. So please go back & review my first piece of advice(this is some painful experience talking here). Enter the position slowly, adding to winners.
re: top of Trendline @ 7000, you HAD been talking about CAT. Are you now talking about the Dow? I'm assuming Dow – my long-term objective is probably around 4500 or lower…….UBER Bear here.
Thanks for your concern and advice which also is much appreciated – Fear not though I think that my idea of “big” might vary somwhat from your own.
Leo was on the nail though – i have got a top of Trendline at @7,000 do you think it will get there?
Great Post Red!
….and 'newbies' shouldn't be taking 'big' positions of ANY kind (other than cash)…..even 'oldbies' are well advised toenter a trade gradually as it performs as expected, exiting rapidly if it does not.
awesome thanks Leo – you might have saved me a small fortune!
Looking at the chart, it looks like it's ready for a bounce, as it just hit the 200dma. That candle from yesterday shows indecision. I wouldn't go short unless it closes today below yesterday's low.
That would be a conformation of a lower move to come. You also have about 6 days down in a row. That tells me that it should bounce back up from here. Look at the previous times it fell 4-6 days… it bounced.
http://stockcharts.com/h-sc/ui?s=cat&p=D&yr=0&m…
I wouldn't go short at this point. Too oversold, and hasn't confirmed a break of the 200dma. It's needs 2 days in a row closing below it, with the 2nd day closing below the low of the 1st day.
Red