Market pauses to form B Wave…

Posted on Aug 11, 2011 by in Letters

When markets panic there are always "smart" traders who seize on the "oversold" situation to scrounge for bargains.  This is how B waves are formed.  C waves are formed when traders realize that they have bought a bull trap.  A B wave is being formed right now, very similar to those which formed in November of 2008.  We do not choose to stand in front of onrushing trains, so we liquidated our shorts and are now long -- a trading position.  Readers who are not young, agile and aggressive should be  watching this with amused interest from the sidelines.    So should we.  Nonetheless...

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