Aremarketparticipantsmostlyrationalandlogic?probablyyes,butmostofthemaresonarrowlyfocusedonneartermeventthatsometimesevensomethingobviouscanbeeasilymissed.
IthastotakeafullnightforthewholemarkettorealizethattheDollarover-corrected,pricinginawholepointcutinsteadof3quarter,thus,thegreenbackwentupagainstothercurrencies,suddenlyalldollardenominatedassetssuddenlybecomecheaper,thusthecollapseoftheco...[
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"Mayyouliveinaninterestingtime",thatisthequoteIheardalotlatelyfromnewsmediaandisattributedfromchina.Beingraisedandeducatedinchina,Icannotthinkofaphraseusedindailylifeclosetothesemanticsofthesaying,eventhoughIwasnotsurprisedatallknowingWesternersalsomakeupstaffasfromchina/Confusiantomakeitmoreauthoritative.Afterwatchingthemarketandparticipatedlatepartoftherallytoday,anotherchineseproverbcametomymin...[
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Thespectreoffearfinanllybegintohuantthemarket,andsomesmartmoneydefinitelytooktheadvantagetosnatchsomedepressedsharessoldbythepanicinvestors.Exceptenergy,allsectorsareclosedmuchhigherthanwhentheyopened,especiallyfinancials.Meanwhile,the$VIXisreachedthehighsofJanuary,So,somecontranianbuyingshouldbeinstore.
However,thisisspecialtimesneedspecialattention.Bynomeans,themarketisoutofwood,theoveralltr...[
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Thisisquiteimpressive,nolessthantwoday'sagowhentheDJIAwasup400points.Whatstandingoutisthatalotofstocksrecoveredfromseeminglybrokendownfromtheirsupport,alongwithallmajorindexes.Lookslikethebullwillnotgiveupwithoutafight,andwhatafighttheywagedtoday.
Otherthanthelastminutes'hesitation,againindicatingaweakconviction,thismarketlookslikefounditslife..
Thismakestomorrow'sCPInumberevenmoreimportan...[
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Sometimes,smallmovesofthemarkettellbigstories.Eventhoughthemarketwasdownonlyfractiontoday,itspeaksvolumnabouttraders'confidence,orlackofit,towardthemarket.Youcanblamerisingoilprice,ortrytoexplainitawayasnaturalpullbackafteryesterday'shugemove,butthefactthatthetradersarereluntanttoholdthestockovernightsimplyindicatesthereisnoconvictionsonbuyers'side.
Therearealotoftalksaboutthebottomofthemarket...[
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IfthereisonethingstandingoutforthisFED,itisitswillingnesstoacommodatetheWallStreetanditspenchantforsurprise.RememberthefirstactionoftheFEDunderBernanke,itcutdiscountrateonanoptionexpirationday.Andtoday,theFEDisonitagain,injected200BillionintothetroubledmortgagebusinessjustaweekbeforeFEDmeeting.Butontheotherhand,eachofFED'sactionthusfarseemsonlyprovideatemporaryrelieveandinflictthepainforthe"short"...[
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OK,thingsgotseriouswhenthesupportisbroken,andthisiswhatwegot,moredownwardmovewithnobottominsight.Withallthat,themarketisstillnotoversold,talkingaboutstubbornmarket.VIXisstillunder30,so,youcouldsaythesellingisorderly:)
Alltheleadersaretakenout:steel,agriculture..thatisthesignoflossoftheconfidence.andwhenthemarketlostconfidence,thebuyingwilldefinitelyrecede.
So,Isitthetimethatmarketwillrebou...[
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Thechartisuglyunlessyouarein"short"position.Allmajorindexesarebelowtheirsupport.IfyouarepurelyrelyonTAsystem,itistimetoshortinsteadofbuy.Andifyoureadfinancialnewsfrommajorfinancialsites,therecessionisthemostfrequentlyusedwordduringtheweekend.Nothingmakepeoplefeelgood.
Fundamentally,itdoesnotsupportahigherpriceeither.Aftergoingdownsomuchfromitshigh,theP/EforSP500actuallyisgettinghigher..Thisisb...[
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Itwassuchatoughtap,evenifyouwerelucktoberightforamoment,theprofitquicklyturnedintoloss.
Overall,itwasugly,thereisnootherwaytoputit.allmajorindexesareatthesupportlevel,anymoredownwardmovefromhereisconsideredbreachofthesupport,technically,thereisnothingmoreseriousthanthis.Theonlyconsolationisthevolumnwasrelativelylow,so,maybethebiggunssimplyholdtheirfiresbeforethejobreporttomorrow.
The$VIXju...[
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Therearemanywaystomeasurethevalueofthestocks,someuseP/E,someusecashflow,someuseROIetc..whenthereareabsolutelynothingtobemeasured(forexample,adotcomonpaper),peoplewilllettheirimaginationrunwildandcomeupwithsomethingtotallyoutofthisworld,likeprice/click:)..However,thereisanotherwaytodecidewhetherthestockischeaporexpansive,itisnotdecidedbythestockitself,butrather,bythedemandandsupply,thatis"technical...[
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