KaiserSosze and All: So far, the expected rotation to safer ground is giving the Dow Indices much more of a boost than expected. If this rotation continues and the expectation that the Dow Indices are safe dissipates, the Dow Indices should begin to decline.
The main risk is all the major Indices will begin to decline at the same time. This will propel money into bonds, money markets, etc. in an effort to find even safer instruments.
Of course, the BTD'ers may well "see saw" the Indices as sentiment "ping pongs" in and out of the “hi-techs and “internuts”.
(Well if I am going to be credited for having it in my "dictionary" I may as well use it...right donald...<g>)
Note: As the ball of sentiment bounces along, the amplitude of each bounce diminishes...as may the "will" to BTD, if progressive lower highs and lower lows become apparent.
Also: The Dow Industrials just rocketed back up to the previous lower trend line of the intraday trading channel (violated by yesterdays plunge) I have been tracking only to be immediately repelled. Will this previous support line, prior to yesterday's plunge, now become resistance or will it give way?
As always, only time will reveal...
EDIT: Right NOW, is a very critical short-term time frame. Will the Dow Industrials break above the intraday support/resistance line or not. And, will the Hitechs and Internuts follow....
Regards,
LG
Disclaimer: My posts are my opinions only and I reserve the right to be wrong on occasion. Do not base any investment decision solely on anyone's views or analysis. Do your own research and take responsibility for your own investment decisions. |
