You Buy, You Die
Quote:
Originally Posted by Conrad 
Sorry, but I can’t take that “rally” seriously. For the most part, up till the last hour of trading, volumes really sucked. Then in the last hour, a lucky break above 9,050 and we’re rallying another 330 points … All I can say is that those who bought into the market in those 330 points, “Good Luck!”. All we need is another down day and those positions will be losers. |
And now I feel vindicated …
If you had indeed bought into Monday’s last hour of euphoria (like most novices did) you’re dead now. All it took was one bad day (like I said it would) and you’re wiped out. This is not a market for the faint-hearted. These gyrations are a confusing mix of recessionary fears, terrible liquidity and earnings driven sentiment … the perfect storm for a perfect novice trap.
Now the DOW is showing a most unique pattern I have not seen before …
… a Morning Star reversal into an Evening Star reversal in a five candle formation. What’s more amazing is that it flips a perfect PHIb-X to a downside XOP which is pointing at a 7,000 confluence!
Quote:
| Originally Posted by Conrad
… it remains to be seen if the feel-good will last … Beware of Dead Cats! … The overhanging weight of recession is surely going to take some sort of toll to cut back any euphoria this week … I expect another roller-coaster week. DOW Technicals for the week: Direction for the week Monday 13 October to Friday 17 October, 2008; ∇ Consolidation |
I’ll find it hard to swallow if DOW breaks below 8,000 because I am so certain that that is the bottom. Of course one can’t be stubborn because the market is too dynamic. What I do expect is a WnR at the 8,000 level before a limited short term run up into Christmas.
Once again, trade with caution and avoid risks.
Happy Hunting!
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