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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (12860)	10/12/2011 3:07:15 PM
From: Hawkmoon	Respond to of 33421

John, I totally understand your perspective. I truly want to share it. Under normal circumstances, all of those factors would lead one to believe that we've hit a bottom in the equities markets, especially given the yields we're seeing in many stocks. But how do you make those yields even higher? But crushing their stock prices with fears of recession/depression, and abuse of CDS and HFT. Europe is kicking the can down the street and everyone knows it. Their banks are leveraged 2-3 times those 5 US investment banks who took down the financial system in 2008. This will eventually resolve itself.. It's only a matter of time, especially if Germans finally get sick of bailing out their less productive neighbors. And if the financial system freezes again, as it did in 2008, the profits of ALL companies will suffer and that cash will likely be used to buy back their deflating stock as everyone else liquidates to raise cash and get off margin. On a different note, with regard to PSAR, let me offer an example of their utility. I have spent the morning trading FAS, as I saw that it was attempting a run to 13.30+ to take out the daily PSAR (Acceleration set on 1). I held FAS all the way up to the point where it appeared to be ready to penetrate that downtrending daily PSAR, and it came within just a few cents of doing so, only to fail at around 13.20. I got out at 13.17, banked coin, and now we're seeing FAS trading at 12.83 The question now is whether this is going to stay as a shooting star on the candles, or whether a late day rally will finally take out that daily PSAR and flip it into uptrend. As it is, I'm feeling pretty smug right now.. But without that PSAR I would have left a lot of profit on the table. Hawk