Justwhenyouthinkthemarketisattheedgeofbreakdown,theBullgetsomethingtheyneeded.1).csco'sCEOthoughttheeconomywillbeok.2).thebailoutplanismakingprogress.howtimely,andthenasdaqbackfromtheedgeofbeingbroken.Itisjustsofunnytoseethecoincidencehowthe"positive"newsandtechnicalsupportalignedsowell,andnowonderpeopleclaimtheconspiracy.
Itbasicallypointtwothingsout.1).themarketisstilltradingintherange.2).th...[
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TheArmageddondidnotcometodayasmanyhavefearedduringtheweekend,asamatteroffact,thebullactuallywagedanadmirablebattle,keepthemajorindexesvirtuallyflatattheendexceptNASDAQ,whichcouldbetheachille'sheelfortheBull.
Themarketisinatoughspot,thegeneraltrendisdown,allthemajorindexesareclosertothelowendthantothehighend.Thenasdaqisexactlyatthelowerend,anymoredownwardmovebynasdaqcouldtriggermoresellingsbeca...[
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WhatColumnbuswasthinkingin1492beforehisfirstvoyagetofindAsia?Faith,ofcourse,thatprobablyistheonlythinghehad.Onthesurface,apersonalitylikehisprobablywillnotlastlongintradingbecausehetooktoomuchrisk.However,ifyoulookdeep,youmayconcludethatthebiggestwinnersinthewallstreetarethecontraians,youhavetobedifferentfromwhatthemajoritiesaredoing,otherwise,youwillendupjustaverage.
Inthatregard,let'strytoma...[
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Sometimesyouwonderwhetherthemarketisdictatedbythenewsorbythetechnicals.Yes,therearebadnewsfromGDPandinitialclaimtoday,so,theycouldbeeasilythescalpgoatforthedownfallofthemarkettoday.Yet,therewereequallybadnewsMonday,Tuesday,butmarketchooseconvenientallytoignorethosebadnews.whyso?
Ithasbeenmypointofviewthatthetechnicaltradeisthetradeofcurrenttime,ifyoulookatthechart,itiseasytoseethemarkethitthe"...[
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ThefirstmanwhoreachedAmericaisaheronow.Buttherearemorepeoplesfailedintheprocessofbecomingthefirstthanthosewhosucceeded.That'swhyitishardtobethefirst.therisk/rewardisjusttoogreat.Thisisthesameinthewallstreet.Beingthefirsttobuy/sellmeansthereturnwouldbegreatwhenyouareright,butifyouarewrong,youcouldendupholdingthebag.
Understandthispsychology,thisisnotdifficulttoexplainmarketoftoday.Themarket,asw...[
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ItisnosurprisingtoseeDJIAbacktothe12700level,now,thequestioniswhatcouldcomenext?
Afterfailingtoseefurtherdropoff,the"short"coveredtheirtrackinthelastcoupleofdays,thisisdemonstratedbythequickriseofalotofbeatendownstocks.forexample,AIG,BLK,CPLAandHOLX.theyhavebeendownquitealotfromtheirhighs,buthaverecoveredmorethan5%lasttwodays.Ifmyobservationisright,otherthansome"hot"sectorsand"hot"stocks,mosto...[
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Thebondinsurerscankeeptheir"AAA"rating,andfinacialsectorsgetareliefandmarketrallied.Whatproblemdoesthisratingsolve?well,itallowsmanyinvestmentbankstokeepthosebondsontheirbook,thus,avoidinganotherroundofwritedownsoftheirassets.Asmatteroffact,themoneytobailouttheinsurnersareprovidedbythesamebanks.So,alltheseseemlikeafinancialgamesandundoubtlyraisedthequestionwhethertoday'srallyisonasolidground.
...[
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BylookingatVIXalone,itseemslikethesentimentalofmarketisimproving,theindexstandsatadbelowits50dayMAandmorethan30%offfromitshighof37setinJanuary.Yetthemarketwentnowherelastweek,andthechartpatternofmajorindexes(DJIAandSP500)isforminga"pennant".So,whotobelieve.
Thereisnodenyingthattheoverallmarketisinadowntrend.Otherthancommoditiesandbasicmaterial,thereisnoleaderstoleadthemarketoutofthisfunk.Asama...[
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Itbecomeserrilypredicatablethatmarketfailyetagainwhenitapproachesits20dayMA.Itaffiremsthesuspectionthatthereislackofconvictiononthebuyers'side.Eventhoughthesellingissomewhathalfheartedbasedonthevolumn,itneverthelessshowedunwillingnessforinvestorstopushthismarkethigher.So,anypeopleonthe"long"sideofthismarketmayneedalittlemore"patient".
Assomepeoplespointedouthere,thechartpatternforDJIA/SP500isa...[
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ItseemslikethesaviorofthemarketspellsasFED.AssoonasFEDreleaseditsmeetingminutesrevealingawillingFEDtocutinterestrate,stockshruggedoffinflationnewsandreversetohigh.Thevolumnroseacrosstheboard.Maybealotoftechnicianswerecaughtofftheguardandareforcedtocovertheirshortpositions.
Asthisblogisbeingwritten,DOW/SP500standsexactlyattheir20dayMA.asobservedbefore,the20dayMAisabighurdleforthemarkettoovercom...[
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