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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (216568)	8/20/2009 6:31:57 PM
From: Perspective	Respond to of 306849

Prices often trace out wedgy corrections because the market is trying to snap back into place following a sharp move. The bounce is so steep that it gets corrected deeply, but price is very uncertain and volatile. Rational investors try to cap the ascent with one trendline while more aggressive traders pursue price along a steeper, lower trendline. I do believe wedges say something about supply and demand for a given asset, and more often than not they are corrective in nature - price usually resumes along the original trend when the structure has completed. Doesn't always work, but in my experience it happens more often than not. I see a whole bunch of things that work more often than not now lining up for a turn back down in stocks, up in the dollar, and down in gold. Could go completely against me, but when many things with a certain probability start lining up, the composite probability starts to increase. `BC