I was a bit surprised about today's decline, with the whole new bullish mindset from yesterday being so fresh. The Dow is down over 1.4%, the Nasdaq almost 2%, erasing yesterday's gains. People talk about a volatile market but holy shit! Who is all this volatility? I know you're supposed to just read the chart but I'm also interested where the smart money lies. Is it bullish right now?? It's weird we would close at the day's low like that, big selloff, (from whom). I really wonder what tomorrow will bring. A 300 point up day, or a fizzle 50 point day? Do you really want to see this great bullish leap first hit by today then start to fizzle? I'm wondering what some of the technical experts have to say on this, to me it looks weak, I'm not convinced it's a new Bull Market.
I'm glad you remain unconviced its not a new bull market. Who on earth was trying to convince you of such in the first place?!? (politicians don't count - they lie for a living and so everything said by them must be discounted)
bull market? That ended at the end of 2007, welcome the bear market. Markets will come back down to Jan 22nd LOWS. Buy the big drops and sell the huge rallies.....
I think as to whether it is a bull-market or a bear-market depends on the time-frame you choose to work in. As an example; you can have a bearish looking chart short-term, but a bullish looking chart long-term. The key is to isolate the time-frame you choose to work and see what it is doing right now. I may be short all day, however have friends tell me the market is in a bullish-trend. Who is wrong and who is right? As I see it, we are both right. I may be long the very next day depending what I see in the time-frame I choose to trade. What is important is to have indicators which best tells you what you need to know for the technique you are using at the time you need to use it. Listening to forecasters can be enough to create a psychological bias which goes against what you are trying to remain disciplined. It is tough enough as it is, without influence which has nothing to do with you. This morning I had a bullish bias and it was hard as hell to fight it when my indicators were telling me otherwise. In fact I missed two entry points before I finally accepted the reality of what I was "seeing". What started out as miserable day because of my bias, turned out to be a great day once I aborted my dysfunctional thinking....Needless to say, with the technique I use, I do not listen or watch financial news on TV. I listen to music or something like that. I am a salesman's dream with my built in gullibility and I don't need being sold by anything other than what I have proven works for me.
After 3 days of up markets what do you expect from this doom and gloom crowd? They cashed in, took profits, and ran to the hills. That's exactly was the theme of today's trading, remove everything from the table and go home flat. Bernanke didn't say anything new that these scarity cats did not knew already.
Buy on oversold conditions and smash any rallies promptly. Repeat and rinse, YES? How sweet? Scared out of your pants you go to the markets and as soon you can scalp a nickle or dime run towards the hills. Acting like a scared cat? Welcome to our doom and gloom world.