While the market may chop a bit after the decline today I still do not think the downside is complete.
The market on an ultra short term basis looks to have made a low.
I will be looking to establish more short positions at the green lines on the chart.
I will be looking to establish more short positions at the green lines on the chart.
Sentiment has moved into an area that is indicative of market lows.
While this is no guarantee that the low is in place, it does begin to say that there is light at the end of the tunnel for this decline.
The AAII, Investors Intell. and Wall Street sentiment indicators need to decline more as these have been a little worrisome with their reluctance to show any fear. This translates into more downside and perhaps in a scary manner in order to strike fear into the hearts of investors.
I continue to look for the S&P 500 to drop below 1400 before the low is put in place and August 24th for the low.
Our hedge remains in tact and will only be released should I see evidence that it is safe to do so.
3 comments:
Hi.
I'm really curious how you get the August 24th :-)
Is it a Fibonacci interval since last lows? Is it a Gann Mesh?
Stock Trader’s Almanac says it’s a Bull day.
Many Thanks,
Ok,
Here we go.
Print out a chart of January 2007 and only January 2007.
Now assign the appropriate range of days to each day in January so as to cover the entire 2007 market year.
In other words, the first day might cover January 1-14 and so on.
You may run into times that it will fall onto half days and such, so make your adjustments accordingly.
Now you have a kind of template for the rest of the year that will help with the major direction of prices throughout the year. It does not necessarily tell of the exact moves in the market, but it is a great tool to show when the market could get into trouble.
Hi.
Thank you very much for your explanation.
But if my data is correct I've got different dates. For instance, the lowest value I've have for S&P 500 in January 2007 is January 10th (first third of month) which would correspond to April 28th. The highest value was January 24th which correspond to September 17th.
Thanks,
Post a Comment