Oh, good! This looks so far like a regular correction, which
could only last for 3-4 weeks at best and about 2 months at worst.
In early March retirement money will start flowing in, like it did
last year, which will lift markets higher again. That gives
approximately 5 more weeks, so 3 weeks down and 2 weeks up in
between.
There is one problem with moving averages: everyone knows about
them. If you glance at the GDX chart, you'll notice that it has not
touched its MA(200) and its RSI(14) at 30 for a long while. To
confuse all, I would expect a sudden dramatic drop below MA(200)
while RSI is above 30, and a swift reversal there.
We'll get more crazy trades around here when shorts are forced
to cover all of a sudden. It won't be the banks this time around,
perhaps some of the tech stocks will be good poneys to ride
overnight :-)
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Oh, good! This looks so
Matt/Steve -- Intermediate trend
Posted by junkie on 23rd of Jan 2010 at 11:14 pm
Oh, good! This looks so far like a regular correction, which could only last for 3-4 weeks at best and about 2 months at worst. In early March retirement money will start flowing in, like it did last year, which will lift markets higher again. That gives approximately 5 more weeks, so 3 weeks down and 2 weeks up in between.
There is one problem with moving averages: everyone knows about them. If you glance at the GDX chart, you'll notice that it has not touched its MA(200) and its RSI(14) at 30 for a long while. To confuse all, I would expect a sudden dramatic drop below MA(200) while RSI is above 30, and a swift reversal there.
We'll get more crazy trades around here when shorts are forced to cover all of a sudden. It won't be the banks this time around, perhaps some of the tech stocks will be good poneys to ride overnight :-)