Q and A: Why short FT100 and not DAX30?
FT100 short was a winner
I was calling for short FT100 weeks ago. The results so far: 3 out of 4 targets hit. As a reminder, this was what we took away from the chart on 08 December.
And this was subsequent price action.
Now reader Phyllis asked this question
@Sohtionghum Hi Mr Soh, I wonder if there is any particular reason you didn’t cover DAX30.
— Phyllis Toh (@YumMumPhy) December 11, 2015
When you short, you short the weakest
When you want to short you are betting on weakness. So you short those that are already very weak and not those that are strong for whatever reasons (unknown to you and I).
Dear Phyllis, this is the concept of relative strength. When you pick a fight, you pick the weakest guy.
Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.
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