Panic Buy
Quiet, weak markets are good to sell. They ordinarily develop into declining markets. But when a market has gone through the stages of quiet and weak to active and declining, then on semi-panic or panic, it should be bought freely.
So now we finally have some panic. While this panic is buyable, unless you are skilled and very confident of what you are doing, I see no rush to buy. Any rally, if it starts from here will have enough time to offer buying opportunities. Also if you see dip buyers and others getting too active, it is most likely that after a weak rally there will be another down move. As of now I still see lots of bullishness and people still holding on to momo names. So probably it will take couple of more scares for the market to put meaningful low. Low risk buy opportunities will appear after few weeks.
Update: With buyers rushing in to buy and the final numbers looking not as scary as they looked around 2:30, this move may have more downside after attempts at bounce.There is still no real fear in the market
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11 comments:
if correction continues, what is chance of real momo plays holding onto gains? to withstand corrections?
thanks
if correction continues, what is chance of real momo plays holding onto gains? to withstand corrections?
thanks
Slim. More momo plays will breakdown.
not to belabor the point, but something like CRNT? has had a lot of relative strength compared to overall market...
not to belabor the point, but something like CRNT? has had a lot of relative strength compared to overall market...
what about something like CRNT? especially considering all the relative strength recently...
I've looked at the indexes ($INDU, $NYA, $COMPQ, $SPX) and they all have the highest volume of the year.
If we compare with other drops, this indicate that the big fall is behind. Tomorrow it will bounce for sure. After that, it might go down a little bit but no much more (if history is any guide).
WRLS acting well, recent 100% eps.
There was money was to be made in trading the TWM ultra-short ETF today. The Russell 2K is now officially in a bear trend across all horizons - long, intermediate and short-term having fallen through 50 and 200 DMA's. I suspect there might be a short-covering bounce that will be short-lived (no pun intended). Tomorrow's going to be a very interesting end-of-week trading day to say the least!
We should have attempted rally tomorrow after the public dumps into panic after the morning bell.
With the tick being so high today we should get some start of a bear rally. We are also coming into end of the month window dressing.
jj2000426~let us know when SWC has an Episodic Pivot. if SWC doesn't hold ten this week get ready to have your nuts punched cause the swing point is 7.95 on SWC. play the channels or go back to herding goats.
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