no one is looking for the market to drop 1000 in a single day, its just these historical highs followed by predictions of 13,000, 14,000 and even 36,000 is getting so overdone. The markets havent seen a "simple" small minor 1% pullback in 3 months. Im sure the markets will move higher but the day we see a triple digit drop on the dow it will be a wake up call to many investors who put there money into the market above 12000. Another thing that baffles me is today oil is up over $2.00 and the markets ignore it. hmmm
the day it drops 300, im buying. to be scared of this day you speak of is just stupidity...how can you be involved in investing and trading if you are scared of this day the market does bad...when it comes, worry about it...geez
problem is ... if you are too leveraged and the day comes when you are caught flat-footed you are left holding a tin cup at the 5 and dime :eek:
The day it drops 300, I dont see that happening, I think its going to be a few of those 45-85 point drop kind of days. If it drops 300 points in a day I would back off, I think any news to drop it 300 points would be major news not just a simple selloff.
either way, what's the point of suggesting in almost every post i read here there's going to be the day the market GOES DOWN. OH NOS!!! Come on...we are at highs...we could go higher. we could have a 200 point drop one day...but just what's the point of saying over and over "this big down day will come." if it does it could be GOOD. more opportunities to buy. why be scared of it day after day. anything can happen in any case... and i bet when we have this day, most people here will say they called it...wow what prophets...calling a down day in the market lol. except nobody is even calling the day. they have been saying it for months, "we are crashing" , "down 300 tomorrow", "this rally is bs"... those people are just sad. there's always something to invest in...or trade on those days. so worry about it when it comes
Markets are overbought.... DIA AND SPY showing RSI above 80 QQQQ nearing 80 on the RSI. VIX nearing 52 week lows. Index Value: 10.66 Trade Time: 4:14PM ET Change: 0.12 (1.11%) Prev Close: 10.78 Open: 10.88 Day's Range: 10.60 - 10.88 52wk Range: 10.15 - 23.81
maybe. there's going to be a sell-off someday. it doesn't mean we're going to crash or be in a long term down trend. it might even be healthy. so what's with the hype
RSI means nothing in an uptrend. Just keep moving your stop loss up under your trend line... I've been doing so for a few months now.
Yes, you're right to say RSI means nothing in an uptrend, it gets pegged in the upper range. However, I'm seeing RSI topping off, looking like plateaus and starting to curl back over downward. Most sectors, except for energy, are showing this now. To me this is a signal that we've hit the top. The down move may not be a trend reversal but it's going to shake out a lot of people. I'm heading for high ground and am hedged with long strangles. JMO. Good Luck, MyOwnBoss