Holy cow Ray, I haven't seen you in years! Glad you stepped out of the shell and into the daylight to say hi.
If we're going to have a 'real man's' correction, we've got a rerun to watch next week. Bad Fridays make for Bad Mondays. So says the experience of 1987.
As for leadership, anything not tech-related seems to have only a marginal capacity to sustainably rally the market. I mean look, as of yesterday, the tech weighting of the S&P 500 was 31%. It's still the leader of the pack; there's no tail wagging the dog in this case IMO.
The Naz resembled a double top. Naz 2900 is where the train makes its next stop with any serious capacity to decrease one's downside risk.
I don't like catching falling knives when hysteria reverses. Just like the average Joe, nobody expected the Naz to basically keep going up for two months straight to the year end. I was watching my screen a few months ago thinking, "Geez, I wonder how people are going to feel when it's going to be down every day."
There's so much technical damage out there it screws up all my basic picking points. Time/price analysis still seems to have some ability to help make the entry, but not until some momentum plots start behaving well.
As for gap plays, I'm not really a big fan of the filling concept. However, give me a wicked gap that just slaps the market silly on Monday, and you'll see me playing it on that one occasion.
Rainier |
