AI
A look at the last decade
The last 4 years have really seen some accelerated trading going on. Market swings that took 5-10 years now take 2-3 years. Even when the Markets are in a trading channel the swings can be 100 SPX or 1000 INDU. In a matter of months the Markets can give back all of their gains from the previous years. That is where I am against longer term holds if there is some point where an Exit is indicated. I like the straight lines of support/resistance to play off of. 1300 has been a pivotal area the last 10 years. True there have been dips below it that have still sparked some rallies but there have also been some major selloffs when that support has failed. What you foresee as a trade taking a long time to recover could indeed take years if it continues to go against you. I hope that it does not but will be watching to see how your system triggers an Exit.
What would be the scenario if now the system triggers a Buy for SPXU? Will the Long position continue to be a Hold?
I know when I started trading options 2001-2002 there were a lot of market actions I could not foresee. 2002 was an incredibly tough whiplash year and I just hope we aren't getting onto a similar ride here.
Good Trading and be Safe!
Sincerely, Bob
The last 4 years have really seen some accelerated trading going on. Market swings that took 5-10 years now take 2-3 years. Even when the Markets are in a trading channel the swings can be 100 SPX or 1000 INDU. In a matter of months the Markets can give back all of their gains from the previous years. That is where I am against longer term holds if there is some point where an Exit is indicated. I like the straight lines of support/resistance to play off of. 1300 has been a pivotal area the last 10 years. True there have been dips below it that have still sparked some rallies but there have also been some major selloffs when that support has failed. What you foresee as a trade taking a long time to recover could indeed take years if it continues to go against you. I hope that it does not but will be watching to see how your system triggers an Exit.
What would be the scenario if now the system triggers a Buy for SPXU? Will the Long position continue to be a Hold?
I know when I started trading options 2001-2002 there were a lot of market actions I could not foresee. 2002 was an incredibly tough whiplash year and I just hope we aren't getting onto a similar ride here.
Good Trading and be Safe!
Sincerely, Bob
Good Luck to All! :^)
PLAN the TRADE and TRADE the PLAN!
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