Friday, January 15, 2010

Complacecny!

This is one word that comes to my mind right now:
Many stocks heavily in the red, stocks not advancing after first week's earnings: news is priced in i am thinking and i can tell by the huge number of emails i get that dip buyers have been very well trained to buy every dip and expect that they will make money on every single dip. Be careful what you wish for! Easy money always scares me! We have been seeing lots of easy money lately. I am not counting out a bigger correction than many people think. We have been trained to buy every dip but for some reason this particular dip we are seeing today looks heavier and stronger than previous ones we have seen recently. The market's inability to move MUCH higher after the second week of january is a huge warning to me. Not following thru on last week's rally. I could be wrong but for me, it's time to respect the fact that BEARS do exist and they can take the market lower in a jiffy! Not the time for complacency in my book. If anything, i want to see a correction. Bears and bulls need it!

2 comments:

Blue said...

I think we need to prepare our minds for the idea that selling may beget more selling and MAYBE...just maybe we'll see more than a 3 day move. I have to start trading the open again I think. Today's move was pretty much over by 7am our time. Geesh.

I'm still waiting for more than a 3 bar move (5 or 15min candles) during market hours. It seems like that has been the m.o. for at least 9 months. You get one giant 3 bar move and that's the only clean momo on the day then consolidation/chop city ensues. Maybe I miss 2008's action too much.

traderstewie said...

don't expect 2008 action for a very long time blue. time to adjust to changing markets.

Blog Archive