PreHoliday Effect and Market Assessment:
Well, the PreHoliday Effect I posted had to do with a 50 year average, not the last 5 of 7, but for that matter, I still believe it will be a good time to buy. Understand that what we are looking at in my post is the cumulatively compounded percentage gain - therefore, the market would necessatrily be down in order to support a substantial price rise of the equities. Does this make sense? The stock prices would be lower in order to generate the biggest % gain. So I believe that we are talking about the same thing. If the market dropped 200 points, would that not be a time to go long?
My assessment of the market, after a discussion with Raven this morning in the rttrader chat room left me a lot to think about. For what its worth, I don't believe this is the foretelling of a major correction. I think the market will go to 10,000 and blow past that before correcting. The bears are saying its either overvalued, overbought or precarious for earnings. I don't think any of those will have the overall market indices affect that they would have in the past. Yes, its down today, and yes, it will be down a bit more, but I don't see the money moving to safe havens just yet. The leading funds are still correcting with the markets day by day. When that chagnges, then we will be nearer.
lastshadow |
