Wednesday, February 18, 2009

A New Bottom?

Perhaps. Maybe not. I have to admit, Phil saw this plunge coming in a response to one of my posts, but I actually thought the bottom line of resistance in the DJI30 would hold and it broke down in grand fashion. This downward bias breakout is not sustainable, but whether we will see a sustainable trend upward is the big question. It will happen, but when it will happen is a total guess at this point. There still may be some excellent trading opportunities as the market pauses and corrects in small increments, and I'll be evaluating HOLI, ASGR, and MMM as possible plays for myself should the futures point higher this morning. Just be patient and remain calm in the face of all the panic we are seeing. It's hard to do, but we have no choice.

Have a good one, Roger

2 comments:

  1. Roger, I think it's dangerous to predict the bottom. As for me, I'm just staying bearish until things turn around. Who knows when that will happen? I found that once I stopped trying to predict bottoms, I'm actually making a bit more money than before. Market is testing SP500 lows back in November, Dow is at 6 year low..theoretically, we can go much lower. Ill see how this goes.

    Phil

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  2. @Phil
    You are right, there is no way to predict bottoms at this point. These record setting lows are truely historic, and I never thought I would actually see something like this. However if the market teaches us one thing, it is that its totally unpredictable. I think control over anything is an illusion. The best we can do is roll with the punches. Have a good one, Roger

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