I know there is no bell that they ring at the top, but sometimes these things exhaust themselves. We have yet to have a move in the market that would give me pause. I remember when the Naz topped back in 2000 it went up 500 pts in one day and came crashing down. I think Abbey Joseph Cohen was a dirty word for some time after she said things were getting a bit frothy and it all came crashing down.
Looking at a 2 year chart of the Naz it seems painfully obvious to me that we are in a rising wedge. I have to ask myself, if the Fed has this totally under control. Has manipulation become so good that we just go up in a channel for the next decade. In any event I typically believe in seasonality, where you sell in may and go away. Although that didnt work out so well last year.
In any event I do think some sort of small 200 pt correction is due at this point. So I'm just going to ring the caution alarm. I didnt really like the way stocks were trading today. They seemed to want to retreat in many sectors, in anticipation of a pullback. Personally I'd rather buy the dips than trade at the top.
Might be a good spot to start picking up some overbought stocks and adding a few shorts on strength vs buying the breakout. My .02
Market Topping ?
Hi,
Yes I also think that a correction is coming and I'm going to enter some short positions.
John
main1event said: ↑
I know there is no bell that they ring at the top, but sometimes these things exhaust themselves. We have yet to have a move in the market that would give me pause. I remember when the Naz topped back in 2000 it went up 500 pts in one day and came crashing down. I think Abbey Joseph Cohen was a dirty word for some time after she said things were getting a bit frothy and it all came crashing down.
Looking at a 2 year chart of the Naz it seems painfully obvious to me that we are in a rising wedge. I have to ask myself, if the Fed has this totally under control. Has manipulation become so good that we just go up in a channel for the next decade. In any event I typically believe in seasonality, where you sell in may and go away. Although that didnt work out so well last year.
In any event I do think some sort of small 200 pt correction is due at this point. So I'm just going to ring the caution alarm. I didnt really like the way stocks were trading today. They seemed to want to retreat in many sectors, in anticipation of a pullback. Personally I'd rather buy the dips than trade at the top.
Might be a good spot to start picking up some overbought stocks and adding a few shorts on strength vs buying the breakout. My .02
Click to expand...
Friday tends to be profit taking day, so I think we'll end up down today. I'm' seeing the same action today as I did on Thursday, stocks heading down. So this is probably the start of something much bigger. We need a correction.
Just looked at the MidCap Bear 3 x Direxion Fund, its forming a bullish engulfing bar. I think the Midcaps might get clobbered here.