High Risk Long Position at this level?

plastik129(phidog) writes:

Today I was short, but then I read alot of traders scaling to go long and it confused me. I couldn't understand why because the tape just screamed short to me from the start. Anyways, it was distracting to say the least.

Yes, you read about the traders that expect a bounce up at this level because the trend is up and the market is oversold in many commonly used indicators like the Daily RSI. Also there is a Market Timing Strategy that you can read about in my blog.

In my opinion it is very premature to go long and they better be placing a stop at the right level. In other words it would be a high risk long position. You take a look at the daily and see that everytime there was a wide range bar it is followed by a Doji or an Inside Day, then it reversed UP. That is what those traders are expecting. But is it going to happen again?

Tomorrow's Economic GDP Report is the most important of this week and it will move the market through many stops.