First hint of panic and fear | stockbee

7/26/2007

First hint of panic and fear

We see first hint of panic today. Yesterday morning the dip buyers were so complacent and bold that we were already up big time by market open. So the strength quickly faded. If the panic and fear last a little today, then sentiment will start changing. That kind of market weakness and panic is buy able.

5 comments:

F. said...

The fall this morning was partially due to the weak retail buyers I mentioned yesterday in the late afternoon rally. I mentioned this risk. They will almost always panic, liquidate or get shaken out.

It's good to monitor the quality of the participants.

threadogg said...

f. you've got that backward, it was the reluctant retail investors reported on this blog last weekend who had already gotten out of the market that are looking like geniuses. they certainly aren't panicking like the pros are right now. the little guys won this one so far.

F. said...

That's not how the markets work. It will shake out as much loose change as it can. You will learn this lesson one way or another. The public always holds the bag or gets shaken out.

Pradeep Bonde said...

On a daily time frame public is at best 0.0001 % contributor to volume. Public is also not in to dip buying. So I don't agree with this interpretation.
Those are programs launching bear raids.

F. said...

The public is not necessarily just the retail trader. Hedge funds and smaller funds, basically anybody but the large institutions, market makers, and locals.

The large funds make their money because they can afford to draw down and are longer term players. The locals and market makers will always punch out the loose change at the edges of the market. It has always worked like this and probably always will.