Well I see this decline as a great buying opportunity to buy expensive stocks that are now a lot cheaper, but at the same time, I'm afraid that the TA wont hold up. For example, I like CFC...
The problem now is if we're going into a bear market, and the consumer is weak, even those high quality stocks will "just sit there, and eat all day, and not mate....you sold me queer Giraffe..." to quote 'Gladiator.'
I see 3 support levels on your chart that if breached could spell a world of hurt on this stock. Rather than anticipate the turn at one of these levels, I would wait for a bounce and confirmation and then go long. You won't pick the bottom this way----but you may avoid one.
This thinking I never understood. In a falling market why would you want to try and pick the bottom on a 'strong stock' when you could change your focus and look for good shorts instead. Then ride them down with the rest of market and take the easy money. When the bleeding is done those stocks will still be there. Why try and outsmart the market? Lots if times I find it easier to make money on the short side anyways since the market usually drops faster than it rises.
Totally Agree. If someone cannt accept the fact the the market could go either way then trading is not a career for him
We may head higher again however I think we at least test the 11700 area first. A 10% correction would be healthy for these markets to keep the rally intact. I would turn slightly bullish around under DOW 11400. Would probably go extremely bullish under DOW 10750
Yep... thats why I make a living off people like you.. http://elitetrader.com/vb/showthread.php?s=&postid=1360819#post1360819