Looks to me like the selling momentum has peaked - but price could go lower. All kinds of indicators are at extremes, representing one of those rare opportunities where you can really profit. Some are expecting a Black Monday -it could happen - the difference this time is I can place all kinds of orders with my internet broker and be fairly assured they will be placed somewhere near my instructions. If you were there in 87, and tried to call your broker to buy anything, it was impossible to get through...
On the other hand, the indexes will no doubt test whatever low is hit, and you get a second chance at it..but my own experience with individual equities is that intial low is the point to buy...
-But put a stop below it and protect yourself at all times....
Momentum
Started by
wyocowboy
, Jul 28 2007 04:21 AM
4 replies to this topic
#1
wyocowboy
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Posted 28 July 2007 - 04:21 AM
Good luck is with the man who doesn't include it in his plan.
- Graffitti
- Graffitti
#2
mmm
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Posted 28 July 2007 - 06:41 AM
Good advice. One thing that tells me we are not going to have a crash on Monday is sentiment. The sentiment I see is showing real panic by the news media and the general public. The evening news for the last three days has focused on the sell off going on in the markets with very pessimistic reporting and concerns about the consequences. This has to show some sort of bottom forming now. FWIW. Crashes tend to be unanticipated events and this would not be indicative of a crash event. We may continue with more selling over the next week that in retrospect may look like a crash; but I'm in your camp. FWIW. Thanks for your thoughts.
Dennis
#3
traderpaul
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Posted 28 July 2007 - 09:20 AM
Good advice. One thing that tells me we are not going to have a crash on Monday is sentiment. The sentiment I see is showing real panic by the news media and the general public. The evening news for the last three days has focused on the sell off going on in the markets with very pessimistic reporting and concerns about the consequences. This has to show some sort of bottom forming now. FWIW. Crashes tend to be unanticipated events and this would not be indicative of a crash event. We may continue with more selling over the next week that in retrospect may look like a crash; but I'm in your camp. FWIW. Thanks for your thoughts.
Dennis
Go look at history before you make that statement.....(1987)
"Inflation is taking place now. Prices may not appear to be rising because they are making packaging smaller. "— Rickoshay
#4
wyocowboy
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Posted 28 July 2007 - 10:23 AM
Don't need to look at history - I lived it ...nuff said.....
Good luck is with the man who doesn't include it in his plan.
- Graffitti
- Graffitti
#5
flyers&divers
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Posted 28 July 2007 - 12:16 PM
Sentiment readings are one thing and forced liquidations are yet an other. I am certain J6P and many hedge funds are shocked and are paralized like deer in headlights.
Even if this move is over there will be unwinding of positions even as new money is coming in. 
F&D
F&D
"Successful trading is more about Sun Tzu then Elliott." F&D
