no buyers in this market though, so just be aware that the main
trend is down and even if we got a bounce, it will not be the
bottom, no bottoms until we capitulate
"By definition, capitulation means to surrender or give up. In
financial circles, this term is used to indicate the point in time
when investors have decided to give up on trying to recapture lost
gains as a result of falling stock prices. Suppose a stock you own
has dropped by 10%. There are two options that can be taken: you
can wait it out and hope the stock begins to appreciate, or you can
realize the loss by selling the stock. If the majority of investors
decides to wait it out, then stock price will likely remain
relatively stable. However, if the majority of investors decides to
capitulate and give up on the stock, then there will be a sharp
decline in its price. When this occurrence is significant across
the entire market, it is known as market capitulation.
The significance of capitulation lies in its
implications. Many market professionals consider it to be a sign of
a bottom in prices and consequently a good time to buy stocks. This
is because basic economic factors dictate that large sell volumes
will drive prices down, while large buy volumes will drive prices
up. Since almost everyone who wanted (or felt forced) to
sell stock has already done so, only buyers are left - and they are
expected to drive the prices up.
The problem with capitulation is that it is very difficult to
forecast and identify. There is no magical price at which
capitulation takes place. Often, investors will only agree in
hindsight as to when the market actually capitulated."
SPX 30 min chart.png the 30
Posted by matt on 8th of Oct 2008 at 11:26 am
the 30 min wave count is still a possibility, however we need to see the MACD crossover to the upside
no buyers in this market
Posted by matt on 8th of Oct 2008 at 11:37 am
no buyers in this market though, so just be aware that the main trend is down and even if we got a bounce, it will not be the bottom, no bottoms until we capitulate
breaking down
Posted by matt on 8th of Oct 2008 at 12:06 pm
breaking down
chop city
Posted by matt on 8th of Oct 2008 at 12:18 pm
chop city
matt, do you think macd
Posted by yawang36 on 8th of Oct 2008 at 12:30 pm
matt, do you think macd positive divergence on 1 and 5 min chart? what do you think?
not really, at least not
Posted by matt on 8th of Oct 2008 at 12:32 pm
not really, at least not well defined, still some on 15 min chart, but could just puke as well,
Can you define capitlate, please??
Posted by srleblanc on 8th of Oct 2008 at 11:52 am
Can you define capitlate, please??
Matt
Posted by ravun on 8th of Oct 2008 at 11:51 am
Please to define "capitulate"
Maybe thats unfair.
"By definition, capitulation means to surrender or give up. In financial circles, this term is used to indicate the point in time when investors have decided to give up on trying to recapture lost gains as a result of falling stock prices. Suppose a stock you own has dropped by 10%. There are two options that can be taken: you can wait it out and hope the stock begins to appreciate, or you can realize the loss by selling the stock. If the majority of investors decides to wait it out, then stock price will likely remain relatively stable. However, if the majority of investors decides to capitulate and give up on the stock, then there will be a sharp decline in its price. When this occurrence is significant across the entire market, it is known as market capitulation.
The significance of capitulation lies in its implications. Many market professionals consider it to be a sign of a bottom in prices and consequently a good time to buy stocks. This is because basic economic factors dictate that large sell volumes will drive prices down, while large buy volumes will drive prices up. Since almost everyone who wanted (or felt forced) to sell stock has already done so, only buyers are left - and they are expected to drive the prices up.
The problem with capitulation is that it is very difficult to forecast and identify. There is no magical price at which capitulation takes place. Often, investors will only agree in hindsight as to when the market actually capitulated."
Source: Investopedia.
yup that's it....I mean the
Posted by dylan398 on 8th of Oct 2008 at 11:56 am
yup that's it....I mean the point where I usually miss it...