>> The Nasdaq has been moving up the last 10 days give or take. We have one down day and you act like it is al over???
I just do not understand this thinking.
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Glenn, re my thinking. Remember just before NASDAQ hit its latest temporary bottom at 3200. I had been saying it will go below 3000 or 2500 by July 25. My reasoning is that individuals are not buying into the scams that new economists are so fond of. The only buyers are the speculative funds that are nostalgic for the momentum days of last year. So after a severe drop, the funds step in herd-like and buy. That reverses the drop. But in order for the scam to work, they have to sell their shares at higher levels. But the past three times there were no buyers. So the rally stops, and prices drop. The minute that happens, everyone tries to dump their shares, and with the wonderful leverage of margin, NASDAQ gets to a new lower low.
This sequence happened 3 times since March. I don't see any change in the climate that would argue against it this time.
So if I am right in this thinking, we ought to see NASDAQ below 3000, and as a specific stock example, AMZN below 40, since that is 10% below its most recent bottom.
So yes, we had a one day drop after 10 days of rise. I'm saying this one day may be the start of a new down leg. And even if it isn't today, the down leg is still coming. |
