*** TA Update ***
from my Thursday night post at Investor Village's PBG msg board:
investorvillage.com
Waterfall crash could end on Friday or early next week, but a good signal for a tradeable bottom is true capitulation on heavy volume. Dow down 800-1,000 points and Spx down 80-100 points intraday could provide that, if heavy volume accompanies it.
The pain for investors is reaching intolerable levels where almost everyone will sell or redeem mutual funds within in the next few days, causing a real crash and selling climax. I would rather see that than a more drawn out selloff, lasting 1-2 more weeks with some up days in between the moderate down days.
Shareprices for some stocks are overshooting to the downside in ridiculous manner. Don't be fooled, the quality stocks will recover a good portion of their recent losses, retracing 38-50%, but only after they reach a bottom. The market will not drop another 30% in this cycle, but could drop another 8-10% imho. Individual stocks could drop 20% in a selling climax, or in a mkt that drifts lower for several days.
I might be wrong, but I believe there is a good chance for a tradeable bottom to be made on Friday or early next week if the mkt crashes straight down.
regards,
drbob |
