For goodness sake dppl, charts and fundamentals are only 20% Sentiment is 80%. The market is mainly a place where the bull thrives. The bear comes out of hiding only when the bull is wounded or confused. After the bull recovers, the bear has to hibernate again. Sad, isnt it? Time to buy calls and sell puts. The trend is our friend. Let's not be absolute believers in anything: tech analysis, fundamentals, whatever. Remember, it's only the cynics who survive. If you believe in just one thing (TA, buy and hold, whatever,) you lose. When sentiment is against you, it's difficult to win. Dont worry too much over violated necklines. Who lost money in the recent crash? The kind of people who paid $50 for IOMG thinking it was fundamentally priced at that. The point being: Any analysis works only when the trend is with you. Else it just dont. So when your analysis fails, reverse the tune.
COMP has broken thru the 200 dma. This will be widely percieved as a bullish sign. Yet, the time to go long on any stock is only after the first correction in it's chart. Since only a higher bottom will confirm that this is not a bear rally. Btw, I agree with you. Rally on moderate volume does advise caution. Besides, Friday rises are not very trustworthy. Monday/Tuesday will tell.
Fed will be under pressure not raise interest rates until after the elections. So like Judy says maybe we gotta wait till october for some real bear action.
Good luck
Cadaver |
