INDEX UPDATE
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Just heard on CNBC that of the 15 x 3% one day drops,I believe since 1987, 14 of them have bounced back. The one that did not bounce back was the one that in the early 90's at the beginning of that bear market. If I misquoted, please correct me, since I am not that good at reporting.
I believe that very soon/immediately, we should have a bounce and this bounce will be a major key to what to expect in the future.
If there is a bounce and it is sold off almost immediately - that could inticate that we are heading alot lower.
If a bounce holds awhile, it could indicate that we may not drop as much as everyone thinks, at least not right away.
Dont misinterpret me, the market looks very unhealthy, but it is important to keep a cool head and to watch the technical and fundamental signs, and not put too much attention into the analysts and media.
The perfect example of why not to fully listen to the analysts is the 180 turnaround in less than 24 hours by RALPH MAKE-EM-POORER. Anyone can change their position, but to make a complete reversal, so fast and with NO WARNING. Would like to know when Prudential started selling - I bet you it was before Ralph changed his position.
So, watch the market carefully - make your own conclusion - dont be head-strong with your position in case there is a change.
Again, watch this forthcoming bounce, it there is one, as a strong key to how the market will act later on. If there is not bounce - would that confirm a bear market - probably.
Seeya |
