Lets put it into perspective shall we? Today has taken out Monday and Friday's panic. Not fair to say in one day - because we missed yesterday's action. We still have Thursday, Wednesday and Tuesday's panic to contend with. If you are a day trader, Christmas has come early. If you are an investor, you will be smacking your lips (put would probably be a bit nervous about sustainability). If you are a stock swing trader, good luck!
Not sure we are out of the woods yet. The macroeconomic issues such as unemployment, inflation, and budget deficits can still affect any investor's portfolio. However some people say it should not really drive investment decisions - to me - can become quite confusing?
some people are right, IMO. No point trying to sift through infinite possibilities WRT macroeconomic factors. Absolutely no ways anyone can make a call on that. But company fundamentals are absolute (except Enron, and maybe some SA miners). The right company fundamentals will ensure sustainability, and they will ride out the macro stuff, and make you money in the good years.
Should be nice dead cat to trade. For those that didnA't know that the rates were going to stay low, Ben reminded them last night. A lot of volatility out thereA..things are jumping up and down. This not a Bear market. Just a correction. Hopefully it lasts by traditional October bottoming of the market.
At the risk of rekindling "that discussion again... I agree with you. If there is value - buy. If it goes lower, so be it. But you have to dip your toe in the water at some point. AND the charts are shattered. By the time they resolve into a new trend - we may be up 10%.
All I can say is I've made a killing here because I learnt how to trade one of these things in 2008. I paid for school back then but I cashed in now. That said there still more downside after the panic, I think we're headed much lower unfortunately because the issue of US debt still persists, its just been delayed, in the same way the economic downturn was. Its just scaling up the inevitable, so far we have recession and default, who are the other 2 horsemen of the apocalypse going to be?
Did anyone watch the Roffey review last night?He was so excited bout his market predictions he nearly fell of his chair, plus the poor commentator didn't have a chance to get a word in.He blamed every TA and fund Manager for not being right and if they watched his show they could have been...It was so funny!Btw I don't follow him nor take his advise,and it was by accident I watched the show, but ended up being good entertainment.
Just watched it on the internet now. His negative and positive divergence works 10% of the time. Congratulations on his successful hit. He didnA't forget to mention that heA's loaded on his Gold stocks, which somewhat added a bitter taste to the sweep soup he made!!!
I have done some research on sell divergences and have found that sell divergences on daily and weekly charts serve to correct markets and give a chance to re-enter at a lower price. Generally stocks tend to correct by about 20% but then they rebound and take out the previous highs. Here are some examples: BIL (20% correction between April and July 2010), KIO (19% correction between September and November 2009), MPC (20% correction between December 2010 and February 2011) and WHL (20% correction between November 2010 and February 2011). All these stocks recovered and took out their previous highs. Recently CFR and NPN have done sell divergences and done the normal 20% correction. It is probable they would take out their previous highs and go up some more.