Trading After Dramatic Repricing of a Market
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When there’s a dramatic repricing of a market, such as the one recently seen in Crude Oil, there’s a period of instability in the market that can be very costly if you fail to take it into account.
The old trading adage that “the market takes the stairs up and the elevator down” really applies here. Dramatic repricings tend to happen whereby markets sell off hard and fast, so there’s an element of bargain hunting that inevitably goes on. People are looking to take advantage of oversold prices, but there’s always the selling momentum that motivates more selling as well.



see more: http://www.netpicks.com/trading-dramatic-repricing-market/

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