Puke Points

Posted on Oct 29 2014 - 5:14pm by Sharpe Trade

Ok, enough of the commentary about where the market is heading.  Because, briefly put, although I have a bullish bent at the moment, because the market is going up for right now, no one knows where the market is going.  Not you.  Not your broke brother-in-law.  Not some “YouTube Genius” with a bunch of charts that make no cohesive point whatsoever, other than betraying the fact that he has a “Doom Porn” addiction.  And no, not me either.  God?  Yeah.  But unless you have a direct line from the Almighty giving you stock tips?

You can’t predict the future.

Traders love to think at times they can predict the future.

But they can’t.  Period.  And neither can indicators.

Stochastics can’t do it.

Bollinger bands can’t.

RSI can’t.

MACD can’t.

Aroon can’t.

And so on … and so on.  Because there are literally thousands upon thousands of indicators out there, and it seems like every year I’m in this business, a new one comes along.  Mind you, I use a few tools as I make my decisions.  But I know that when I use them, those tools are simply tools that measure, a specific type of market action that has already occured.

And there is a part of this business, that is a complete art form.  The art form of buying, when the auction, when the mob is about ready to absolutely puke.

That is the best terminology that I have heard describing such buying opportunities, and of ‘that moment’.

Puke points.

It’s that point, when the crowd collectively grabs their garbage pail in the middle of the night, because they are going to upchuck all over the place, and capitulate.  That moment when the whole crowd gives up, and you enter in to buy at the capitulation.

Seeing that moment my friends?  That’s the art of it.

There are indicators, true.  Volume spikes and the like.  But I have yet to find one tool that truly nails down puke points.

Determining puke points.

At some point, it’s an art form that is developed through a lot of observation

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