Welcome and Today’s action
by J ~ November 27th, 2007
Welcome to everyone. Hopefully this blog can provide a little insight on how the market works. Maybe we can provide a little edge in trading the market as well. I say “we” because I have a partner in crime to help decipher the market moves. This blog will have a charting bias in our trading style. I respect all trading styles, but through all my experiences, charting has been the most successful for me. Well, enough of the intro – let’s move on to the market and some stocks.
Today’s Action
The market has been extremely oversold the past few days. So I expected a bounce. I didn’t know when it would come or how long this will last. Today is the first day off the lows. That is all this is, one day. I would like to see a trend before I dip my toe in the water. As G.I. JOE would say “Knowing is half the battle” and understanding the market trend is half of trading. Right now this market is for day traders. Day trading is a tough way to make an easy living.
I think we will continue to go sideways or downward until the Fed meets on December 11. I think when the Fed cuts rates we could get another bounce. Will this bounce provide a shorting opportunity, I don’t know. I will continue to watch.
The Citigroup news and the Freddy Mac news is not good. Don’t let CNBC fool you. You don’t sell a stake in your company or cut your dividend when things are good. There is more bad news to come. The market was up today because we went down too far in a short period of time.
The Nasdaq and S&P have not broken their descending trend lines, so I don’t have any individual names to look at tonight. I am also a bit suspect of this rally because of the highs and lows. The Nas had 9 new highs and 141 new lows. The NYSE had 17 new highs and 120 new lows. I will continue to be patient.
“Don’t be in a hurry. The successful investor is not invested in the market all the time – there are many times when you should be completely in cash. If you are unsure of the direction of the market then stay out and wait for a confirmation of the next move.”
- Jesse Livermore
November 28th, 2007 at 6:54 am
[...] Welcome and Today’s action [...]
November 29th, 2007 at 4:15 pm
Should I be the first one to ask you guys about your thoughts on Efficient Market Hypothesis?
In other words, do you believe:
Weak-form EMH
Semistrong-form EMH
Strong-form EMH
None of the above
I’d be particularly interested in your explanations relating this to Random Walk Hypothesis and implications of EMH on technical analysis.
Thanks in advance!
November 23rd, 2008 at 6:40 pm
[...] what I said back in November (almost one year ago) about this company. The Citigroup news and the Freddy Mac news is not good. [...]
November 26th, 2008 at 4:46 pm
[...] of our blog. In one year this blog has over 30,000 views! Wow, and to think it all started with this post. What a year it has been! Thank you for all the support. « Tuesday [...]