Hey Stupid Idiot, You ridiculed me for (possibly implying) to buy the dip after the previous Friday's close. You were a stupid idiot then, and still are. Just wanted to give you an ego boost!
Is it because of frustration with perpetual clowns? Like road rage, following an idiot driver who is causing other law abiding road users to go insane.
i agree with the premises of this thread and albeit ikely we will still go lower i dont see price venturing too far away from it's 50sma. if that happens trend will break and market is doomed. technically this is the 5th time only in 3yr price has retraced this much and following a similar pattern as in the other 4 previous corrections. it has now gotten close to one of the best buy spots in the whole cycle : TA gives here it's strongest buy signal... anyone acknowledging the validity of TA should think of going long: <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1565158>
You could certainly get a short-term bounce here, but, it is quite likely that this time is different (on an intermediate-term basis). Sell the rallies.
the market has to build a more significant base and that may take at least another week or possibly even three to four weeks as was the case in the early summer last yr.
looking at many charts, I do agree this would be a great time to go long. I was nibbling from the long side on Friday and I held on to those positions over the weekend we shall see tomorrow - I just hope we don't get more bad news ala Citigroup etc. but short-term certainly we are due for a bounce, and a big one!!
<i>"Without a doubt this is is the best time 2 buy ever. The market is stronger thasn ever."</i> On its face that statement is widely viewed as asnine and ignorant, to be blunt. The market obviously isn't stronger than ever or volume wouldn't be crushing to the downside. Looking at a monthly chart of the SPX, we do see where price action has hit layers of congestive support. 12-month (one year) moving average at 1429, 62% of the 07 lo/hi swing and 38% of the 06-07 lo/hi swing all come within several index points of confluence near recent lows. This is a prime spot for price action to magnetize at for awhile or bounce from sharply. If it bases here for weeks or months, better likelihood of forming a bottom. Sharp bounce of +80pts to +100pts or so probably fails. If they crack below 1420s in the cash and fail, look for 1350 area in a hurry. In the old days when I played index options, I'd have been an OEX or SPX call buyer = put credit spread seller near these levels. I'm old and scared to hold positions overnight, just a day trader now. Prefer to shut off the charts and not wake up at 3am est wondering where futures are trading & how that affects my open positions. Maybe I'm the only one here who has ever lost sleep like that, dunno. Regardless, S&P is at clear layers of support formed by different groups of investors = traders who are oblivious to one another. Prime spot on the chart for a pause that refreshes. If it doesn't hold, kiss goodbye another -100pts SPX in a hurry.