I think we have a few days lateral and then explode back up to new highs. This may be the best buying opportunity of the year. :eek:
Why do you think the market will go to new highs from here; what's your reasoning or do you only hope it will happen?
IMO Still too much liquidity to allow Fridays move to follow through to next week. I'm chalking this one up to Expiration. Quoting Bill fleckenstein "today(friday) was the largest option expiration ever, as there'd been enormous positions in gobs of January paper, which at one time had been LEAPs. Many options expired worthless. But during the day, there may have been a lot of options that at one point looked worthless in the past and came back to life, precipitating further selling." But you never know when liquidity will just dry up. VERY VERY excited about next week. I LOVE volatility.
The market swung to an oversold position on Friday. My system is sending buy signals now -- not sell signals -- which tells me the odds favor long positions.
I use cycles and this years cycle happens to look like the one we had in 2003 in the nasdaq. That is the big picture, the stuff you are worrying about are normal pullbacks in uptrends where fresh blood gets shaken out. aka. good buying opportunity. I am full of crap so please dont take this seriously.
Son, throw away the technical analysis books, you've been sold on the hype. You are arguing with a few of the guys who have some experience navigating these treacherous markets. You would be best served by assuming the fetal position and sucking off of their collective titty. Good day.
LOL, I was going to post the same thing. You beat me to it Study, no offense, but you shouldnt make such a bold statement to such a senior member. He is still here for a reason ya know.
I think the strong momentum that started on Friday will carry over on Monday. The Bullish advisors to bearish advisors was 60 to 20 last week, whereas even after the market declining the past week, the bullish advisors are still above 50. This just tells me that majority think it is a retracement and not a change in trend and the market usually proves the majority wrong. I'm still holding on to my shorts here.