Sonki and others:
Couple things you have to decide this weekend (yes, this weekend)!
1) If any Rally by the mkts, will you sell INTO STRENGTH? That means, in other words, "get out while you can"?
OR
2) Sit out Completely. As I am doing. I'm not sure everyone likes my strategy <gggg>. But do know that you DO NOT have to be in the mkt 100%. I think that is foolish thing to do. Let the mkt dictate your stance.
OR
3) Is this Buy on dips mentality?
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My personal feeling on the mkt is: All my opinions!
This is the start of a 1-3 month decline. We are setting up just like the OCTOBER CRASH. (PLEASE, im not saying WE ARE going to crash) <ggg>. The price formation looks VERY simliar to 10/17/97. Around those times. (im using DOW index as my reference.) Why?
a) During that time, (referring to october 1997) DOW was below 50 day ema
b) the declines were AFTER a SHORT MKT RALLY. (to see what i mean, look at months mid sept 1997. See how we came from a decline and then a rally?).. Currently, we can do a simliar comparison by noting a decline in April 1998 to May 1998. Then SHORT MKT RALLY from late May to late June). Simliar setup.
I hope i made my post clear.. with all the dates, it's confusing
summary: If you look at the action from aug 1997 to jan 1997, you will see a lot of similarities in price formation. Basically, use a trendline and note the price action.
Again, being in cash right now, you have the luxury of not worrying about "how far we can go down". |
