Friday, January 23, 2009

Here We Go Again

I'm used to down days after a big run up, but today looks to be a repeat, if not even worse, of yesterday. There is so much uncertainty in the market today one has to wonder when it will ever settle into a stable rise.

New investors are getting frustrated by the seemingly unsettled vacillation, and seasoned investors are plain-out fed up by the inability of the market to "make up its mind". It should be no big shock that 4th quarter earnings are off for many companies, but the market reacts as though it's been blind-sided by the news.

Even though the market is unsure, we must be sure of what we are doing or we will get hammered. Even in a big down day some stocks perform really well which is always the case, but they are hard to find.

Sometimes you just have to stand back and wait for the dust to settle, and this may be one of those days. Even though the market may start by falling flat on its face, it could easily turn positive at the drop of a hat as the day wears on, but that's the nature of the beast, so to say.

Try and have a good one,
Roger

2 comments:

  1. One thing that I have been looking at the last 2-3 weeks is the price action on a 60-minute chart. If the price is below a 13 period EMA on the 60-minute chart then the odds are against a short term up move on the daily chart. I am thinking about using this as a filter in stock selection. Of course this means one must have the time to monitor during the day which some of you may not be able to do. This seems to work pretty good in this down market and not to sure what will happen when we get a a decent rally. Pull up some 60-minutes charts, along with a daily chart on some of the buy signals for this past week. Today this kept me out of MSFT, STZ, EXBD, ORI, SLM and TYC. I did enter positions for SNE and DOX.

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  2. @Anonymous
    I'm going to check out that filtering process. Thanks, Roger

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