Although I am aware of how bad it all looks, I try to keep
an open mind to all possibilities. As things change, unexpectedly and suddenly, possibilities become probabilities.
One possibility is that when the landscape appears impossibly
dismal, rallies often are born. If we are there now, I couldn't know; I can only observe the clues available. It's a case of when the majority agrees, they are often wrong. The
market is a game; various holders of various card hands with
various piles of chips behind their bets. It may come down
to too many betting short right now, I don't know.
One thing I do know and was just studying again is the current action of the Nasdaq daily candlesticks and volume
trends pointing to a possible short term bottom; may have
happened already. Shooting star 11/13 is a clue. Volume spike
that day too. The volume spikes on the bottom days of 10/18,
10/26, 11/13, 11/17 all are telling me something...this market is trying to bottom. Those particular signals are
as valid as the volume spikes at tops 7/13, 8/31. The volume
spikes then were warnings that tops were there.
It could be that the weight of so many negative factors could
implode the market starting Monday. It could also be that
the bleeding might be put off perhaps a little further down
the road, maybe an 8 week rally like the period 5/26-7/21!
If history teaches us anything, it is anything is possible!
Beara pointed out holiday week may bring nothing but sideways
action. I do think very soon though the market will reveal
its' next turn in the road.
Regards,
Eichler |
