Good morning Kevin,
It's been a while since we talked, though I have been following your postings.
First, congratulations on your INTC play--I thought that you were crazy as you were doing it, but it sure seems to have worked out for you.
Market action looks great with a lot of stocks getting decimated--but this should present a great opportunity to re-enter on the long side, unless one believes that the bull is finally dead. I have never been very good at global prognostications of market tops and bottoms but I am going to watch closely for a chance to take positions in some of the stocks that I have been waiting on, to correct. My sense is that given the state of the economy, low inflation, flow of money into mutual funds, etc, it is unlikely that we have seen the top--but who knows! I think the Greenspan effect is a short-term one-- though if the market again starts running away, he may feel the need to do something such as raising margin requirements to make his point. Can't see him doing nothing if he keeps issuing warnings and the market after a quick hiccup, ignores him.
As I said to Joel and Thomas on the other thread, what I'd really like to see is a somewhat oversold market and more importantly a shift in sentiment sentiment to the kind of pessimism that prevailed in July last year. I think that should set the stage for a decent rally.
How are your new indicators working?? Also, have you ever looked at your RSI system in reverse to see if it produces good signals, on the long side? In other words, if the RSI declines to about 5 then it may be a good point for entry on the long side.
Regards |
