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Strategies & Market Trends : Sharck Soup

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To: Sharck who started this subject9/12/2001 11:48:00 AM
From: mish5000   of 37746
 
THE UPCOMING PSYCHOLOGY OF THE MARKET:

The Market could finally see true capitulation once she re-opens. If, as speculated, the COMP is down as much as 200 points at the open, I will certainly be looking to go HEAVILY LONG for potential squeeze and psychological bounce....

Let's examine the psychology of traders at this point:

Longs - probably think that the world is coming to an end and will want to sell at any price.

Shorts - (positions held from previous sessions) will see prices plummet so fast, that they will cover quickly as they realize that this is essentially quick and free money.

Neutrals - and this is where I currently stand - (no positions) will use this emotional turmoil to make logical trading decisions.

Good luck, but remember - it's all a fabricated psychological battle between fear and greed. Nothing has changed fundamentally with these companies.

From a strictly economical standpoint; the only positive factor that we can take from this tragedy will be the benefits that certain tech sectors will receive. Computers, Storage and Networkers along with other office technologies will eventually need to be replaced....

I hope no one takes offence to my last paragraph (with regards to replacement technologies) as I know that a human life is more precious than any man made commodity; but as I stated I was commentating strictly as an economist.
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