Aw ... you helped put Bam Bam in office, didn't you? If you didn't vote for McCain, that's what you did. Because we have this common interest, though, I'll still enjoy your company!
the best way to see the top was the nasty failed signal on XLF. bull-trap + double top. and the Russell 2000 breakdown and EEM price and vol analysis. ; )
OK thanks! Do you think we will rally again Tuesday or Wednesday temporarily? If so, where should we sell next?
don't know. My holding period is daytrade to 2 days hold swing trade max. As far as long-term positions I've been telling people close to me to sell ASAP bc of the risk reward here given the economic fundamentals, high stock valuations and broken technicals. Who knows what could happen in a couple months that could pull us back up but the risk reward is bad here in my opinion. It actually wouldn't surprise me to see a 1987 play out next week. This is all just my opinion.
Thanks Jupiter0, I'm assuming a right shoulder will be formed, and I want to ride the upswing. I have six accounts, all in cash. Monday, I'll start slowly going long again around the 1025 area in the S&P. Monday, I'm expecting a gap down, then a continuation of the downswing with the usual Monday morning sell-off.
I'm thinking the same thing. The market anticipates the future and once the holidays are over what's going to drive the fundamental recovery? I think last week's action put a lot of fear into people who will want to take profits, mentally revisiting Oct 2007 highs when they may have wished they took their profits.
I gotta go back and check what happened Oct '07 to see what you're talkin' about. I was a buy and holder back then.
Weren't we all! I wasn't a trader back then, but our IRA's were cooking with gas before the selloff into Jan 2008.
The attached chart contains the previous head & shoulders that occurred this past June & July, up to the head & shoulders that SEEMS to be forming. The slanted horizontal line on the left forms the neckline of that head & shoulders. The line on the right is what COULD be the necline. Notice that a relatively small candlestick (opening & closing prices) separates the head from the shoulders. That relatively small candlestick is what we're looking for. If you guys have been following me, you should be ahead of the game like I am, and can afford a some error. I have six cash accounts, four different brokers. Monday, and maybe Tuesday, I'll SLOWLY start going long again. Some of my buddies are staying out for now. I'll leave it to you guys to decide what you want to do. The best of luck to us all! NoDoji, does your husband know you're SEMI-flirtin' with a Republican truck driver?
ADDENDUM: The other scenario is we could drop to and close at 1020 before we go up. Check out the attachment.