Please look at the charts. All 3 major indexes closing above 50 day moving averages. On SPX 5, 10, 21 day EMAs rising while 50 day and 200 day still sloping down. IBD has confirmed a follow through day on March 20, 2008 and market is now in rally mode accordingly. The Feds, Treasury department, Congress is behind longs/buyers so that financial markets remaing healthy and productive. They will manipulate the markets at any turn. Shorting is hazardous at this point.
By all means DO look at the charts. For example, on the Dow: Thurs 3/20 - huge volume, but no new high Mon 3/24 - volume drops in half from Thurs, closes off the highs Tues 3/25 - no range at all, which may mean No Demand From Buyers, low volume, closes off the high Wed 3/26 - off 109 pts, closes just off the lows Can I predict the future? No. And neither can yuo or IBD. The Fed, Congress, Bush, God - none of these can have more than the shortest-term influence on the markets. All yuo've done is say "Shorting is hazardous" for weeks now, on all the best shorting opportunities. But, fear not, like a broken clock yuo're bound to be right at some point.
FEDS, Treasury Secretary, Congress are standing by, should these markets fail at some point and someone tries to hijack them with undue pressure and muscle, they will step right in and kick his asses out of the ballpark. They already done that last few months..They own these markets, they own your balls too. They will manipulate, twist, and do whatever to keep US markets productive and attractive to investors worldwide and continue to lead the way. Its like US military defending its home turf stupid brains.... Why dont you just get this in your numb skull? Is this so hard to see ?
The market is already on a good footing as various technical indicators are up, and also because many long people are now sitting on gains and some of the shorts are sitting on losses. So, the down moves will most likely be not violent (with the exception maybe of tomorrow which is a Thursday). Thursdays are typically violent if on the down move as people take their gains, limit losses, and they start thinking weekends. Average Joe buys stocks at the beginning of week, and food/drink/clothes at end of week.
I agree. Stocks are on much better position Technically than ever since the start of 2008. All major indexes are above 5, 21, 50 day moving averages which are starting to flatten out. There is consolidation these few days and nice tight patterns of price movements and low volume pullbacks like today- which could have been a violent sell off. Bears are lurking hoping to short this but they may fail here and shorts will be licking wounds. What people do not understand that Feds and Treasury Department are like US military trying to defend its home turf. You can't fight these huge forces with any kind of attempts to hijack or disassemble financial markets and create chaos and panic.
First it was the patriotic speech (talking about Kennedy nonetheless), then the religious speech (shorts will burn in hell...), and now we've come to the threatening speech. What's next? I'm really curious now...
IBD is fos. It lost any semblance of credibility when momo tech stocks crashed and burned, as it was advising chasing them with reckless abandon, all chips in at all times, plus leverage. It won't be long before buyers dry up, as the low volume snap back rally trend gets stronger and stronger. Hell, any adverse surprise now is forcing margin players to sell off winners to cover.
Not sure how IBD could have lost credibility in the 2000 crash as O'Neill uses a technical system that gets him and his readers in and out of the market. They look at distribution days, follow through accumulation days and market leadership. They only buy leading sectors and stocks that show accumulation. If their system didn't change (which I don't know) then it got readers out of the market in early 2000. Then they must have re-entered the markets a few times unsuccessfully between 2000-2003 on what we know with the bias of hindsight were bull-trap rallies, as they got stopped out a few times until they hit the jackpot riding out the 2003 rally. IBD's claims were always: a) We avoid major bear markets b) If we lose, we lose small c) We won't miss major bull markets/up moves
Any one can make the same claims by applying simply technical analysis. For example using MA will do the trick.