The market action coupled with trader sentiment is reminding me of almost exact similar action i saw in early sept 2009, early oct 2009, early nov 2009 and late december in 2009. BUY DIPS is the best strategy in my opinion. The more you think, the less it will make sense.
This dip is different though. Your chart very clearly shows why.
ReplyDeleteYou are very right, the dip looks different but the rally off lows looks eerily similar. market dips slightly, gets bought up and just slowly but surely trickles higher.
ReplyDeleteBad call, Stewie. You should have pointed out what was incredibly obvious: On this dip, the moving averages turned over. It was clear this bounce was going to create a lower high.
ReplyDeleteThe break was on enormous volume. The last rise has been on the most pathetic volume we've seen. It was clear this was a bull trap from the start of the bounce.
this looks like it be a bad call after seeing what the Fed did today after the close BUT i have a hunch, many will be surprised in the days/weeks to come when the jan. 2010 highs get retested again. A retest of the feb. bottom needs to be expected. It might be a "bull trap" but what i believe is that the jan highs have a good shot of being retested in due time. we shall see....
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