Bryan, I'm referring to TA using charts for the COMPX. There's an indicator called the "fast stochastic" that I use when charting stocks. Bottoms are formed whenever this indicator reaches a low, close to zero. The indicator itself has a range from 0-100. This is just one indicator out of many that I use. That alone will not give you a bottom, but it indicates the beginning of a new trend. I went long on a few issues, before I should have, based on this indicator and others that are getting close to buying range(not a true signal yet, but close). Thank God for stops, or else I would have gotten stuck holding FDRY.
Now, consider that coupled with most of the big caps have warned, and the Fed decision is over with. There isn't much more negative news for us to decipher. It will be a stock by stock basis similar to FDRY. CSCO, INTC, MSFT, and many many others have gotten creamed. INTC is STILL holding it's own. From the looks of things, maybe we do come all the way down and touch the 2250 level after taking a quick look at some charting. If so, it will be fast and furious. However, in the meantime, I think certain issues have probably hit there bottoms, so the weak ones will probably drag us lower. I don't think nibbling here would hurt anyone. That's what I'm doing, and I was tad early. No biggy, will just find more bargains in the next few days.
But, remember that after EVERY FOMC decision, the same thing has happened for the past 2 years. Sell off after the decision, then the following Wednesday, then a gap higher on Thursday. Then I expect a 2 day rally, then another possible sell-off to retest lows, and hopefully that retest will be a HIGHER low to signify a possible bottom for 2000. Stay tuned.
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