| MAR 1988
Survival of the fittest by Philip Gotthelf
Survival of the fittest by Philip Gotthelf With the proper tools and right attitude, the ""Crash of '87"" represented one of the greatest profit opportunities in history. A single short S&P 500 futures position could have delivered an amazing $60,000— without even picking a top or bottom. However, we have the benefit of 20/20 hindsight. Could we have spotted the Crash in time to profit? If so, could we have maintained the cool discipline required to stay with short positions long enough to take advantage of ""Black Monday"" and moves that followed? The answer to the first question is obviously yes. It is the second question so many must answer in the negative. In reality, few were able to sustain positions through the wild swings that took place the week before Black Monday. An examination of the December S&P 500 chart (Figure 1) reveals that the market held support at 31000 throughout October 12. This area was tested in mid-September and late August. In addition, the June/July consolidation held above 31000 for more than four weeks. Therefore, strict chartists should have sold the S&P 500 on October 12, 13 or 14. The support was violated. Furthermore, the 10-day moving averages had been penetrated.
by Philip Gotthelf
Technical Analysis of STOCKS & COMMODITIES
The Traders’ Magazine since 1982
has had over 1,226,237 subscribers from 174 different countries.
37,000 Page Traders’ Archive for $89.99
To continue reading, sign-up for trial access to Traders.com and the S&C Archive — 37,000 pages of trading ideas!
After verifying your email address, you will have limited access to the S&C Archive, as well as access to a Digital Edition of S&C, and access to Traders.com Advantage and Working Money for 30 days.
Not a subscriber to Technical Analysis of
STOCKS & COMMODITIES magazine?
Click
here to subscribe, or request
a trial subscription.
Log-in now to view articles from the S&C Archive.
Your Subscriber ID is located at the top of your magazine label, highlighted here in red.
Your last name can be found on the second line, highlighted here in blue.
*If you have a company name on the label, that can also be used. It will appear below your name on the label.
If you do not have a Subscriber ID on your label, you can find it on your statement or renewal form.
For help locating your Subscriber ID number, please call us at 1-800-832-4642 or send an email to Survey@Traders.com. If sending an email, please include your name and mailing address.