READING PSYCHOLOGY is more important right now than T/A. The fear factor has dropped many stocks way too far down. If psychology improves, watch out. We could get a heckuva rally for a day, two or three, fueled further by panic short covering and real buying. The key is to hold solid gains until 3:30 pm. If we do that and get a couple good earnings after the close, we really rally tomorrow and THAT will change the near term outlook to positive. Massive short covering and more real buying will come in.
Everybody knows stocks like ESST, ITRI, ORB, BEAS, IRF, FLEX, MSFT, RTN, etc. are worth more. They've had good to excellent earnings and guidance. Their fundamentals are also sound. Other than BEAS, who has not reported, I am rarely buying ANY stocks who didn't have good earnings and guidance. I was nearly fully invested over the weekend "long". I usually don't take chances like that, but the R/R was in my favor.
PS-- T/A is important, don't get me wrong, but don't forget psychology. The longer we hold gains, the more confident traders and fund managers will become. News of some European pension funds no longer loaning shares to Hedge Funds for shorting will also help. |
