LD Lossdog Research
strategy

contrarian trading

5 matching records.

Trade idea

SPX contrarian trading

The speaker discusses a trade where they went long the SPX (S&P 500) at a specific level, which was later validated by the market moving higher. They describe this as a contrarian trade, indicating that they entered the trade when the market was at a lower level, expecting a rebound. The trade was successful, and the speaker acknowledges it as a good example of a contrarian approach. The trade idea is based on identifying market dips and entering long positions with the expectation of a rebound.

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Strategycontrarian trading
Assetindex
Time horizonshort-term
Entry / triggermarket dips to a certain level
Target / exitmarket reaches a higher level
Invalidation / stopmarket continues to decline
SpeakerJeff
Risks
  • Market continues to decline
  • Volatility increases
  • Liquidity issues
longindexlongcontrarian tradingSPXshort-term
medium confidenceVerify in video at 34:28 ↗
Trade idea

Trade idea Contrarian trading

The speaker suggests that traders should consider contrarian strategies when identifying price extremes, as these extremes may indicate potential reversals or continued trends. The idea is to recognize hyperbolic moves or extreme volatility and act accordingly, even though there is no guaranteed success. This approach requires personal judgment and the willingness to take on contrarian positions.

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StrategyContrarian trading
Time horizonShort to medium-term
Entry / triggerIdentifying price extremes through subjective judgment
Target / exitPotential reversal or continuation of price trends
Invalidation / stopMarket conditions may not support the expected reversal
SpeakerScott Sheridan
Risks
  • Subjectivity in identifying price extremes
  • Market conditions may not support expected outcomes
  • Potential for significant losses if the market moves against the contrarian position
contrarian trading
medium confidenceVerify in video at 13:55 ↗
Q&A

What are we doing in Oracle in earnings? Get long after it got cut in half over 6 months?

The speaker suggests getting long Oracle (ORCL) after it has been cut in half over six months, indicating a potential contrarian opportunity. The speaker is short put options on Oracle, expecting the stock to not fall below the strike prices.

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Actionable takeawayThe speaker is taking a contrarian position in Oracle, expecting a potential rebound after a significant drop.
contrarian tradingORCLtrading strategy
medium confidenceVerify in video at 1:02:21 ↗
Q&A

Do you think this is a market where you have to have the position on or do you think this is a market where you can put that position on once you see something starting to turn?

The speaker believes there is always time to put the position on and does not think one has to be early. However, they emphasize the importance of being in before the turn when selling the market, as the velocity of the turn is fast.

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Actionable takeawayIt is better to be in the market before a potential downturn, as the velocity of the turn can make it difficult to jump in afterwards.
contrarian tradingMarket Timing
high confidenceVerify in video at 1:11:36 ↗
Q&A

How do you approach trading the oil market?

The speaker suggests trading the oil market using either the CL or MCL contracts, with a preference for CL due to its liquidity. They recommend avoiding ETFs and stocks that track oil, as they are less efficient. The speaker also mentions that they are a seller of rallies and a contrarian, suggesting that traders should consider the market's volatility and liquidity when making decisions.

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Actionable takeawayTraders should consider using the CL or MCL contracts for oil trading, focusing on short-term volatility and liquidity, while avoiding ETFs and stocks that track oil.
contrarian tradingCLMCLMarket Liquiditytrading strategy
high confidenceVerify in video at 04:58 ↗