....how the charts work sometimes.So the green line will either be a relevant stopping point or it won't.
Wikinvest Wire
Wednesday, February 13, 2008
Interesting...
....how the charts work sometimes.So the green line will either be a relevant stopping point or it won't.
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8 comments:
Now just don't go saying that a breakout is the signal you need to get longer! lol
Yes, but you can draw a resistance line every day and they are frequently broken.
Look at a weekly chart and draw a resistance line. They are harder to break through. But, you are correct it may (or may not) take a couple of days to break through the line you drew.
Roger,
Interested more in the text book indicators. So far, the slow roll you have called is spot on. Of course, there's also the bear rallies. Time duration averages 6 months...something like that. Draw down average 28%/?. But, the mkt was already down 20%...and the range on these last two descriptors is quite wide. Bullish to bear sentiment is almost equal, so I hear. According to textbook, what should the bull to bear look like? Spoon feed us more on expectations from the textbook. Great stuff. Today, the bulls have reason to hope but the green line is what it is. I like your stand on price data vs valuation. (Personally, spending less time on the web, but I try to read your daily leading post)Jasper
Jasper, you may not be thrilled with my answer. First there will be several ways to be right about the bear to bull transition.
First thing I would say is that I am suspicious of any rally so soon after the peak.
The slow roll over from Oct to year end leads me to think normal bear so that implies next august at the earliest...which of course could be wrong.
If the market retakes its 200 DMA, regardless of when that would be a reason to believe demand was again healthy but would only take a small step lest it be a head fake.
i mentioned the other day that if we were down 25% from the peak in june that I might think of that as very text book and want to reequitize some then.
I still think there will be some more rally this month and I would not consider my self bullish. we will see.
seg
Volume is helpful here Roger.
Volume accelerated into the sub 1300 dive yet has abated in the subsequent rally, which suggests a an imbalance of sentiment favoring the bear case.
And it's one vote for "relevant" - lol
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