To Orion, rruff,Frank, hdl, Dan;
I agree with 100% Orion, market is irrational or illogic, cuz there are too many individual cases, like cash resource problems, margin calls, short profit taking or short squeezed, long take losses or take profits, some are scary and very much so fear some stop out, some read the charts and trade based on the stupid charts, some month end get the hellout of the market, some worry Black October and so on and so far.....
Therefore we can conclude that market is irrational. To deal this irrationality is by playing long term and even aggressive players like myself, by cost average by weight, in the long run, this is the only way to beat the hell out of the market.
One gets to 100% understand the global base economy in general, business cycle in general, interest rate cycle in general, and boom and bust cycle in general, energy cost cycle in general, inflation cycle in general, and adopt a aggressive long term investment plan, and feel no fear at all.
For example, Tursday Dow is a clear case of this market irrationality, as described in paragraph 1,
after this totally cleaning out, those discouraged traders, margin calls forced sell out, cash resource problems, and those who use stupid charts set stop loss i.e. like set in 9995 for Dow or Nasdaq 1795 stop loss zone,
after these clean out or wash out then market starts to turn back up again.
u see.
Today indeed, Dow rally back so does, nasdaq, and NT.NYSE.
John Paquet |
