Monday, August 29th, 2016

Where is the market going?

I bet that question has caused sleepless nights to many. I am not immune to these emotions either. I felt caged and helpless and frustrated just like any other trader. Negativity and depressive psychosis is  hitting the streets again just like in 2008 when the end of the world was near !  But since than the fundamentals that caused that bear market have changed. Next bear market wont be based on the same reasons as the previous bear market.

Just remember folks on Wall Street never kill their Golden Goose. Never. They are smart kids. They can kick this goose down  and make you scared most of the time.

We all know big money is made on the long side and stocks have a natural tendency to go higher. Shorting and bears prevail in few situations and is much harder to short than  to go long.  With the market being overbought for  nearly 4 weeks we finally crashed to levels that provoked lots of anxiety among traders.

Why did we crash? Because Wall street was angry and upset as new regulations may be coming down the pike from Obama administration. Well that’s just too bad. Here is some Technical Analysis lets take  a look what is really happening out there.


Since than stellar earnings have plastered the news, $AAPL, $GOOG, $GE, $GS, $MCD $JNJ  to name  a few. Now the question is are we going lower ? Right now there is no indication of a trend change. The overbought conditions have to be worked out and they did. To get the bear suit out and blindly start shorting the bin is another emotional short circuit.

What do you think ? Please make your comments right here. We love hear from ya.

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One Response to “Where is the market going?”
  1. crazy Mary says:

    OK Bud you made you point.

    Here is what I read on yahoo and I quote ” The drop was the market’s fifth in seven days, and the fact that it came shortly before the closing bell showed how uneasy investors are; last-hour pullbacks were the hallmark of a troubled market during the financial crisis of 2008.

    Obama’s announcement of his plan last week helped give stocks their worst week in 10 months. ”

    Go figure

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