Don’t fight the trend; QQQQ in 7th day of short term down-trend; bear market bottoms are marked by huge up volume
With the GMI and GMI-R at zero, I think it is not the time to fight this down-trend. The major indexes look terrible and the QQQQ completed the 7th day of its short term daily down-trend within a longer weekly down-trend.
The key to survival in the market is to lose as little as possible during the worst times. Conserve money so as to be ready for the inevitable turn. I have studied all of the prior bear market bottoms and a common characteristic is huge weekly up volume. We have not had anything like that. We need to sit tight and wait for several days of large volume rises. I remain short and mainly in cash.
Take the poll to the right and let’s see if it is a useful contrary indicator.
Comments ( 6 )
Maple added these pithy words on Thu, 2-26-09 at 12:50 amI’m feeling we’ll drift sideways, maybe a little higher through the vernal equinox, then turn down again.
Take the poll to the right and let’s see if it is a useful contrary indicator.
Fading your readers, Eric?
Albert added these pithy words on Thu, 2-26-09 at 9:58 amI took a small hit with TSYS, from 9.3 to 9.0. It was a failed breakout, so i moved back into NVDA, from 7.41 3 days ago. I’m still holding and its hovering around 8.3, i think i may sell out as i think the market will close lower tomorrow. I do not think the market is at a bottom yet.
Jiri Novotny added these pithy words on Fri, 2-27-09 at 3:56 amTSYS just declared a dividend, wow! You can read almost any good news from the chart long time before the message is out there. I will be watching TSYS, when it breaks out above 10 (pivotal point – see Jesse Livermore’s book), I’m a buyer!
giuse added these pithy words on Fri, 2-27-09 at 2:47 pmBUY ALGT…. TODAY !!
Joseph added these pithy words on Fri, 2-27-09 at 7:56 pmThe only way to make some profit in this market is to become a DAY trader, as I did today with ALGT, gain a little each day. How does the saying go?: Kernel by kernel the chicken fills up its stomach!
Joseph added these pithy words on Fri, 2-27-09 at 9:22 pmEric, are you still keeping TSYS, or did it get below your stop loss? Do you think that its “cup/handle” still holds water…or is still viable? TSYS did have an exhaustion gap when you got into it, and that is one reason I did not buy this stock. Keep up the nice work on this blog!
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