ESJ thread is not a good sample space for concensus. This morning is the 2nd day with extreme selling. Public is unloading.
I am getting more and more of these mails from people who are calling for a bottom, which, on a contrarian basis, would suggest the bottom is far away. However, these two have called it right more times than many so here goes: Hi folks. My horizontal IT target has been hit Thursday morning. Here is a possible place for a temporary cessation of the downtrend. Go Mercury Wood His chart attached. Next guy says: As you can see on the attached the spx this morning met support at a sand bar here and is below the down sloping red line. Interpetation. ......... slowing down for a speed bump while in the fast lane. Not that I am suggesting going long or short here .........but please follow the logic. Being long 3000 iwm is the same as being long 1500 UWM is the same as being long 1000 TNA.......in theory. The benefit of using the higher leverage is that you can set aside more cash to earn interest, the same could be said if you were going to short these stocks. ........well sort of. There are additional risks and disadvantages that your broker will explain and I don't have room for here. Another benefit is that you start building cash. Why is this important ? While the SPX will have a bottom and a test or two of the bottom, when ever that is......so will sectors and the best stocks in those sectors. There will be multiple bottoms and opportunities. His chart in next post
That's why a temp bottom is needed - to suck in more longs. A bounce is needed by the option MMs. That will stage the next move whether we run back up more or drop straight down after friday.
Namely, the motto of the day is "anything goes!" I woke up damn late this morning and missed the morning drop. Hope everyone made his or her small fortune already.
does anyone out there think current intraday chart (bars less than 5 minutes) is starting to look like a Wyckoff creek, and that a drop to print a new low on the day could be a spring? a spring print in the 815.25-814.25 ? come on, offer an opinion, what else are you doing right now?
As long as the bears don't sink their teeth below 810. If that were to happen, all bets are off. At any rate, a bounce is due somewhere in the 812-817 area.