7 replies to this topic

[dcengr]

This has happened only 3x in the past 10 years. 6/17/97 11/08/99 2/7/07 I'm looking also at RUT which has been screaming for the past 2 weeks also, while the Dow and S&P somewhat lag. The NDX appears to be going up a bit. DJU has also gone up the last 2 weeks practically straight up. While many are looking at DJI, SPX, and NDX, I thought this might be of interest.

[denleo]

Good catch. Note where S&P was a month after those occurencies. A lot higher. In both cases it had a 1 day decline and then went up and up. Buy and Hold. Denleo

[dcengr]

Good catch. Note where S&P was a month after those occurencies. A lot higher. In both cases it had a 1 day decline and then went up and up.

Buy and Hold.

Denleo

These also occured after a sell-off, not after sideways consolidation.

I'm not sure what the relevance of this is. But if I were to do an EW, sure looks like a 5th wave on this leg. Will post a chart later.

Still, I think you'll agree that MID and RUT will consolidate after such a run up at the least.

[fib_1618]

Still, I think you'll agree that MID and RUT will consolidate after such a run up at the least.

And since I was asked about a week ago on the timing, the NDX gave a buy signal today at the close.

Fib

[denleo]

I don't think they will consolidate, but even if they will, I have no intention of selling my positions. Indexes will be a lot higher days and weeks later. I still see no risk at this point. I will just sit with leveraged long positions and continue to sell puts on top of that to collect premium short-term. This is a beautiful strong market with no top in sight. Denleo

[dcengr]

I don't think they will consolidate, but even if they will, I have no intention of selling my positions. Indexes will be a lot higher days and weeks later. I still see no risk at this point. I will just sit with leveraged long positions and continue to sell puts on top of that to collect premium short-term. This is a beautiful strong market with no top in sight.

Denleo

Thank you for proving my outlook correct

From my blog the other day:

I'm picturing people doubling up their bets.. holding onto bets at all costs now to prove themselves right. Dangerous situation.

[fib_1618]

I'm picturing people doubling up their bets.. holding onto bets at all costs now to prove themselves right. Dangerous situation.

Yes, in fact, some have even TRIPLED already losing positions as well.

I guess it works both ways, doesn't it?

Call it the "all in" factor with the same rules applying as it would at the tables.

Fib

[pdx5]

Mid-caps were lagging a bit behind DJI & SPX a short time back and now they are catching up. Barring a geopolitical event, I can't see any good reason for these 3 indices to stop advancing. The corpotrate earnings TREND is the key.

Edited by pdx5, 07 February 2007 - 06:54 PM.