TSBTV#4 - Counter Trend Plays
Posted on: January 14, 2009
If you’ve traded for any length of time, you’ve no doubt heard the phrase, “The Trend is Your Friend.”
I can’t argue with that logic, and I really like to make continuation plays if you wanna know the truth. They tend to work great - unless the market is range-bound like the past 2 months!
So when the major indexes have been hammered for several days and are approaching the lower boundaries of their trading ranges, I’m timid with short sales - just in case that support holds again. After all, it is support until it’s broken, right?
As the indexes start to get stretched to the downside in the near term, I start considering some possible plays on the long side that I can turn to when a relief bounce sets in.
In this episode, we’ll take a look at a play I initiated today and why. It’s a counter-trend play to the overall market, but not in this stock. Watch the clip and you’ll see what I’m talking about!
(Be sure to click the full-screen option for best viewing.)
Hope you enjoy the show! Thanks for watching and subscribing, and feel free to post your ideas and comments down below.
Trade like a Bandit!
Jeff White
President, TheStockBandit, Inc.
www.TheStockBandit.com (Premium service)
www.TheStockBandit.net (Trading Blog)
January 15th, 2009 at 9:22 pm
jeff,
thanks for sharing! i’ve learned a lot on your site. Thank you!
January 15th, 2009 at 9:49 pm
Thanks Shawn!
It’s great to see you here and I appreciate the comments. What style of trader are you?
Jeff