Tradingisadynamicanddelicatedgame,ifyouareoutofitjustforafewdays,youcangetdis-orientedrealquickly.Today'smarketisnotthesamemarketofyesterday.andthatisexactlywhatIfelttodayafterdistrictionfrommyworkforthelastfewdays.So,let'sgetacquiantedagain.
Themarket,itseemstome,isindecisiveonbothsidesforthetimebeing.Itcannotmakemindaswhethertheworriesaboutthecreditmarkethasbeenfullydiscountedorthemorethan15...[
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Ifyoureadcbsmarketwatchtoday,youwillfindalotofexplainationsaswhymarketlostmorethan1%today.ItistheBernanketoblame,or,afterthreeupdays,themarketissuspectabletotheprofittaking.Allmakessense,andallprobablyhascontributed,tosomedegree,thedeclineofthemarket.Butthemostimportantreason,IMHO,isthetechnicaltradesbysomebigtraders.
Themajormarketindexestouched20dayMAyesterday.itisacriticalpointifthemarketwa...[
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Yesterday'sriseshowedthathowlittleittooktomoveamarket.Abetterretailsaleandastimulusplanmakethemarkettogoup3daysinarow,afeatwehavenotseenformorethan2monthes.Maybethereisasellerexhustionormaybethereisa"love"intheair:)
Ifyouignorewhatgoesaroundandjustfocusonthechart,themarketiswithinadownwardchannel,anditmovesuptotheupperpartofthechannel.Lasttime,themarketwentsouthwhenitreachedthesamesituation(la...[
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Aftertwodaysrising,weareyetagaininthisprecariousposition,atthehighoftheday,bothDOWandSP500hastouchedtheir20dayMArespectively,itbackedoffquickly,andaseemingstrongrallyfizzedbytheend,NASDAQevenreversetobedown.
Therearetimesthatanuplifingmarketbegetmorequestions,andtodaysisoneofthem.Isthisabeartrap?nobodyreallyknows,butonethingseemsforsurethatthemarketstilllacktheconvictionandthejitterytradersabo...[
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Mondayhasalwaysbeenaninterestingday.Aftertwoday'sofover-thinking,theemotionofremorse/fear/optimitismsomehowisamplified,resultinginmorevolatiletrading.Idonothavestatisticstobackitup,however,therearealotofanecdoteenvidencetosupportit.
ThegoodnewsisthatthemarkethasovercamesomedamagingnewsfromAIGandendeduphigher.Thebadnewsisthatthevolumeissothinthatitishardlyatrendinthemaking.
Technicallyspeak...[
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UporDown,thatisthequestion,otherthanlifeordeath,itisprobablythemostimportantquestionatraderneedtoaskeveryday.
Itwouldbeeasiertotellifthethemarketisinanextremecondition,orthemarketisupagainstitssupport/resistanceline.Weknowthemarketisintouble,buthasthetroublebeenpricedinyet?oristheremoretocome?IfweputarangearoundDJIA,youwillseeitsitsrightinthemiddleofthatrange(12950--13450).theRSIisaround39,iti...[
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Whatwasthereasonforthechangeoftheheart(rebound)ofthemarket?Itwasdownsharplybeforetheopenning,butendeduphigher.Thereisnoparticularmarketmovingnews,andtheforcastfromcscoactuallyisverybearish..so,whathappened?
ItwasNASDAQ,thenasdaqwasdownmorethan20%fromitshigh,thusenteringtheterritoryofbearmarket.BacktoJanuary,whenallmajorindexeswereonthevergeofenteringthebearmarket,thatthemarketbegintorecovery.a...[
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Itissaidthattoday'sdownturnwasbecauseahawkishspeechfromaFEDofficer,thus,itdamppedthehopeoffurtherratecut.Yet,Ifyouhavefollowedmarketfromthebeginning,youcanseethatthemarketwasontheshakygroundfromthebeginning.by9:00a.m.centraltime,themarketactuallydippedintonegativeterritory.So,thevolatilitywasexpected,theFEDspeechonlyexcebratedanalreadyworsensituation.
Itisaconfidenceissuebythistime,manymarketo...[
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Action:shortfmcn
source:IBD100deletion
market:longtermdowntrend,andbigdroptoday.
technical:fmcnisatthevergeofbrokendown.
results:positive
basic:themarketdropwithismservicereport,thefmcnwasatthevergeofbreakdownbutshowedalittlestrength,weshortbasedon:
marketisdownandfmcncannothold
IBD100deletionwillhaveimpactonthestockforsure.
lesson.attoday'senvirnoment,weshouldcashi...[
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IthasbeenanuphillbattlefortheBullforquitesometime,yet,realityprovedthatwearestilltoooptimistics,wethoughtthe"low"hasbeenreached,ifwecannotmakeneartermhighs,atleast,wecanholdatthecurrentlevel.andboy,areweinforasurprise!Ifpeoplewerestillindisaggrementyesterdayaboutwhetherwewillgetarecession,today,itisclearthatwewillhaveatleastonequarterofnegativegrowth,andforsure,therewillbemoreconvertstotherecessio...[
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