I will definitely check it out and may post the link publicly, but it is here for readers to view in the meantime. From the overview, it looks like a very promising article.
Aaron
· 2 years ago
Being a mainly fundamentals investor I am not too much of a technical charts person, but I am surprised that you believe the market will test its highs again soon, that seems to be a contrarian view. Today's market was very weak, closing at the lows, I wonder if we might see some more selling before we head back to those highs.
Corey Rosenbloom
· 2 years ago
Aaron,
I have been relatively bearish this market for some time now, yet price continued to make new highs, and did so at seemingly neckbreaking speed and so I had to surrender that there were forces behind the scenes (unknown fundamentals or reasons) why the market continued its climb, and articles pointed to 'ease of money flow' and mergers and acquisitions driving prices higher. That view was (and is) seriously challenged by the recent tightness of credit, but I figured that the market would make a news-based run thanks to the Federal Reserve injecting billions in liquidity into the market.
From a technical purist standpoint, markets rarely go straight up and straight down. Before rolling over into a downtrend, price often rallies up to retest its highs as 'late bulls' enter but can't push price higher, which results in the classic "Double Top" pattern before entering a downtrend. I'm with you regarding the ominous signs from a fundamental standpoint, but price often undergoes relatively predictable patterns than have been observed through the years, and these are no more than the collective results of buyers and sellers as new perceptions form and old perceptions are difficultly surrendered.
The market almost tested the highs, with the Dow falling 250 points shy and the Nasdaq 70 points shy & S&P; about 50 points. While this retest didn't fit the wave structure, it may have been the 'retest' that the charts often show which is known as the "last dying breaths" of the buyers.
All Comments
Here's a relevant article on the VIX, just posted today at TradingMarkets.com by Larry Connors.
You may find it interesting and worth mentioning to your readers:
Title: Paris is Good; Goldman is Bad, Bad, Bad! Welcome to Bizarro World
http://www.tradingmarkets.com/.site/stocks/comm...
Best regards,
Eddie
I will definitely check it out and may post the link publicly, but it is here for readers to view in the meantime. From the overview, it looks like a very promising article.
I have been relatively bearish this market for some time now, yet price continued to make new highs, and did so at seemingly neckbreaking speed and so I had to surrender that there were forces behind the scenes (unknown fundamentals or reasons) why the market continued its climb, and articles pointed to 'ease of money flow' and mergers and acquisitions driving prices higher. That view was (and is) seriously challenged by the recent tightness of credit, but I figured that the market would make a news-based run thanks to the Federal Reserve injecting billions in liquidity into the market.
From a technical purist standpoint, markets rarely go straight up and straight down. Before rolling over into a downtrend, price often rallies up to retest its highs as 'late bulls' enter but can't push price higher, which results in the classic "Double Top" pattern before entering a downtrend. I'm with you regarding the ominous signs from a fundamental standpoint, but price often undergoes relatively predictable patterns than have been observed through the years, and these are no more than the collective results of buyers and sellers as new perceptions form and old perceptions are difficultly surrendered.
The market almost tested the highs, with the Dow falling 250 points shy and the Nasdaq 70 points shy & S&P; about 50 points. While this retest didn't fit the wave structure, it may have been the 'retest' that the charts often show which is known as the "last dying breaths" of the buyers.
Time will tell. Thank you for the comment.