Wait for the next Fed meeting for a top

Discussion in 'Trading' started by detective, Oct 11, 2007.

  1. This is classic contrarian action in the market, people were bearish for the past 3 months and now that they've turned around and become bullish, you have to give these oxen some rope to hang themselves. Things will not collapse right away, I think you gotta wait for a false breakout to have the bulls really get excited and the bears panicking before you see a top.

    The catalyst for the top will be Bernanke, who is going to try to cause another short squeeze at the next meeting. Until then, the bulls are in control and will continue buying up tech and every other hot sector. Wait to see the whites of the bears eyes (do they have whites? hahaha) before going short.
     
  2. You could be right. the Fed made it pretty clear in the last minutes that they were not considering further cuts, whch means.......................
     
  3. What if there is no "top" in the next 6 months? Or 12 months? Or 24 months? or 48 months?

    I am not saying there won't, but certainly anything is possible in a market driven by supply and demand.
     
  4. We are reaching the terminal phase of the bull market where the bears just throw up their hands and give up, this summer was the perfect storm and the market just shrugged it off. The market will probably go up almost everyday ahead of the Santa Claus rally which will be sold in December when investors realize that the consumer doesn't have unlimited buying power and face up to realities of a housing bubble gone burst.