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Online Share Trading

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Shortening the market

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Preston
Super Contributor
I am starting to liquidate my positions and play on the short side of this market for the following reasons. The rand stability is dependent on a variety of factors namely economic growth, productivity and integrity of leaders in govt. The mining sector strike, Eskom, weak demand for resources, decreased productivity in our labour force, global uncertainty is going to send this market into a spiral.
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37 REPLIES 37
koos2
Super Contributor
Are you shorting the index or individual shares?
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Preston
Super Contributor
individual shares.
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SimonPB
Valued Contributor
so you calling a top ??
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Preston
Super Contributor
no, i am addressing my own fears.
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SpanSpek
Occasional Contributor
I'm tightening stop loss
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koos2
Super Contributor
Wow, good reply, i guess that is what makes the market.
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Quakedog
Super Contributor
SOLD OUT 75% OF ALL POSITIONS THIS PAST WEEK.
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gamma
Contributor
Anyone looking at a short on INL? Gap to fill at 80.77 ....
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Werner_1
Super Contributor
I think i need to get cash ready/accumulate more for long term acquisitions at good prices if they do come along...
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Russ
Super Contributor
Has anyone had a look at the long term DJ-IND chart (from say 1998)? It is just pushing up against long term resistance and there are negative divergences on the weekly and monthly charts. If you are scared of heights don't look! The daily chart is oversold so should get another short-term rally. Personally I don't think it's a bad idea to sell into strength now.
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geordie1
Super Contributor
have taken some welcome profit and gratefull .not sure if we are at top.analysis is all good and well but emotions drive markets and my guess is that this is gonna run higher.whatever happens I am enjoying the ride
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klapka
Super Contributor
a fat, solid at room temperature.
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manere_fortis
Frequent Contributor
Gotta love it, this forum so entertaining. Troll's english klapka'ed for a six!
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koos2
Super Contributor
I am trading the gap, any skin in the game?
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SimonPB
Valued Contributor
hmmm, I about 97% long this market, as is the norm for me ..
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Preston
Super Contributor
@simon, so let talk abt those "famous socks" as per Juliette tweet. Did you buy them from Brazil?
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SimonPB
Valued Contributor
Giulietta, nope Nic Socks
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Not applicable
couple of points regarding your rationale here. Rand has been weak now for more than a year - but we are posting new highs. Decreased productivity - sure, but that has been an issue for decades - but we post new highs. Global market uncertainty? US markets are forecasting GDP growth of 3.5% - that doesn't sound that uncertain to me. We are still posting new highs. Now - if you want to argue reduced liquidity once the US fed stimulus drugs are removed - sure -that is valid cause for concern. But they are still pumping $55bn into the market every month, and they are cutting that back at the rate of $10bn per quarter - that is a more than 1yrs worth of stimulus still.
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THRESHOLD
Super Contributor
Y, and many of the market leaders are either denominated in, or earn the bulk of their income in a foreign currency. The Rand has shown a nice bout of "strength" of late; WHEN it continues its downward trend, the market leaders should move up in Rand terms. Given that they constitute such a high percentage of the overall market value - it would be very dangerous to short the market in general. Shorting specific shares... sure, subject to all of the normal caveats.
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