Good reasons to maintain a bearish bias?

Discussion in 'Trading' started by OPTIONAL777, Aug 31, 2002.

  1. Look at this Renko chart (which I use to get a better fix on mid-term trends).

    As you can see from this chart, we are clearly in a bullish phase with a smaller bear-trend pullback.

    With majorly strong support for the S&P at 900 and the contracts sitting at around 912, a monkey can predict that Tuesday won't see much of a down-trend.

    Of course people were selling before a long holiday, especially with terrorism concerns. Provided nothing extraordinary happens, we should see a climb back up on the S&P until resistance is hit again at 925 -- which we will either break or flirt with for awhile longer.

    The market is unique at every point, but this is just my best educated guess based on S/R, technicals and fundamental overview.

    #11     Aug 31, 2002
  2. Mgkrebs...are you any relation to the originator of the Krebs cycle?

    Anyway, I agree completely with the view of over-valuation. The only fundamental I use for reference is the P/E. This is a value driven market. The P/E's are as you say entoto, 30-%-40% too high.

    Sure if the E's start increasing then the P will become justified. But what is the 6-12 month forecast for real earnings.

    Although I did see a beautiful commercial for Boeing today.

    This stuff is all conjecture...after all, I am sure of only one thing...
    #12     Sep 1, 2002
  3. mgkrebs


    #13     Sep 1, 2002
  4. The trend is your friend. Not analysts.
    #14     Sep 1, 2002