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Joshua Hayes
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Joshua "MauiTrader" Hayes is CEO, President and founder of Big Wave Trading Inc., a Maui, Hawaii-based stock market advisory service. Hayes is a well-respected stock trader who combines fundamentals, technicals, psychology and money management to trade professionally for his personal,... More
My company:
Big Wave Trading
My blog:
Big Wave Trading
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  • CKachi
    , contributor
    Comments (49) | Send Message
     
    do you have protection on short side? are you short anything to hedge your positions...market top is possibly gonna happen and we are seeing huge flashing signs of possible downturn.
    4 May 2010, 04:24 PM Reply Like
  • Joshua Hayes
    , contributor
    Comments (362) | Send Message
     
    Author’s reply » I will go short via what the chart patterns give me. Only ONE index is below the 50 DMA. History (130 years of facts) has proven the best time to short stocks is 5-7 months after they top. The two best setups today for me to go short were VIV and AMMD. However, both missed being new shorts by a hair. When this market is trending down and there is no chance of a rally continuing then I will be short. Right now, it is not a given and as Jesse Livermore and William J. O'Neil have proven, it is best to start operating on the short side ONLY when you know there is no chance of being caught in a short covering rally. Right now all indexes, minus the NYSE, are still above the 50 day moving average and that means if you are short now you are basically net short too early. I have 15 years of full-time experience in this game along with 130 years of market facts to back up how I invest.

     

    Great luck to you CKachi. The market does appear it wants to move lower...a market top? Professional market operators do not call tops or bottoms. We are either moving up or moving lower.

     

    I am also not 400% on margin in longs. I have more cash in my portfolio than I have capital in my 30 remaining long positions. This bull has been moving since March 2009 and most entry points are beyond anywhere where anyone can freshly buy in bulk that has any experience in this game.
    4 May 2010, 10:54 PM Reply Like
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