JT, Respectfully, disagree.
After Steve mentioned Hong Kong, I went out and looked at their WEB. I can just imagine the turmoil and demonstrations in the U.S. if the stock market lost more than half its value in less than a year. That is brutal.
Frequently, these DJIA stocks hit these support/trend lines and bounce like they hit a rubber band. ALD hit $40 this week and bounced over $2 very quickly. If you got confidence in the TA, confidence that the market is going to be higher shortly, and the big boys will continue to lead the way, then the time to buy them is when they hit critical support/trend line levels.
It was funny. Steve and I were talking about MRK at $110, based on retracement. Well, look at a chart and consider that $114 was 38% retracement, which is a key puppy for the big boys.
Probably better than the 70% "retracement" in a lot of tech stocks such as ADPT and SMOD. More and more, I'm convinced that you can make a nice living just waiting for Mr. Market to kill one of the Big Boys. They come back a whole lot quicker than the secondaries. One could have made a real nice living buying HWP at $60 and selling at $65 since last fall.
All that said, I agree with with you. We are probably going to get some key earnings warnings in the next three weeks that will rattle the market. But, some of the Big Boys are getting close.
Berney |
