Welcome back individual investors
This was on front page of IBD couple of days ago. The TD Ameritrade CEO was going gaga over how the individual investors are back in full force now that market is up several montha in a row.
We had a discussion on members site about it and we discussed how it is time to really protect open profits and not get cocky and keep one eye on quick exit. I made 2 videos warning people to not get carried away.
Extremely good momentum does not last forever. If you go to the Market Monitor tab on this site and see the column
When the readings go above 20, it is a sign of excessive bullishness. It invariable leads to correction.
This time there was a bit of delay in selling hitting after it went up. But invariably this is what happens.
Seen this movie for 14 years .... I know how it always ends....
People get mesmerised by excessive momentum and forget where there cap is while looking at vertical moves.
By the time they realise what happened not only their cap but clothes are also missing....
2 comments:
I see this happened in early Feb. 2012. Do you see a similar result playing out or something different?
We will probably get around 5 to 10% correction
Post a Comment