Very good, apparently you looked at MACD and Stochastics .
Anyway, if you look at historical charts, you will see that when the market get's overinflated, real investors, pocket and run, thereby crashing the market.
However, most Bob Joes think that the skyrocketing market is wonderful, and lose their money due to their greed.
I am a traditional technician, compare x and y, when was the last time this happened, and what was the aftermath?
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Dow Average Sets Record as U.S. Stocks Rally on Oil's Decline By Hilary Johnson Oct. 3 (Bloomberg) -- The Dow Jones Industrial Average rose to a record, eclipsing its 2000 high, as a two-month descent in oil prices accelerated and improved the outlook for consumer spending. |
International Level: Ambassador / Political Participation: 595 59.5%
This article was written by a successful financial-type, and it's a very interesting read. How much of what he discusses basically says "go with your instincts." How many people do you know who have this type of an instinct?
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THE TEN TRADING COMMANDMENTS 10/18/2006 11:15:00 AM By Todd Harrison 11:15 AM ET Oct 18, 2006 "Fight? No, not yet. Not until me and Harvey get the rules straightened out." -- Butch Cassidy Editor's note: Todd Harrison is the founder and CEO of MinyanvilleNEW YORK (MarketWatch) -- I remember why I wanted to be a trader. I figured that the easiest way to make money was to stand near the cash register. Of course, as I discovered through my 16-year career, there's a reason why consistent producers get paid the big bucks. Flashy bets and big swings sometimes connect but, in the end, a disciplined approach pays the bills... ...My approach wasn't always constant but, in the end, certain rules allowed me to stay in the game. These are those rules. |
International Level: Ambassador / Political Participation: 595 59.5%
I suggest buying gold, silver, and other precious metals.
the reserve dollar is failing, the $600 TRillion derivitives markets are an extreme threat to the underlying capital markets, the real estate market is ice cold.
Times like these make me really happy that I don't invest in stocks much for financial gain. There is plausible risk, if I can call it that and then there is fool hearty risk and the stock market is a lot like that.
International Level: Junior Politician / Political Participation: 100 10%
The stock market is a fine place to invest. The biggest problem is that people want immediate 10-20% or more returns and that is just unrealistic thinking. If you get into the market, have a long term plan that can weather these types of conditions and generate some profit for you that is better than keeping it in a bank for that time.
International Level: International Guru / Political Participation: 863 86.3%
Ny 401 k plan and my wifes 401k plan are heavy in the stock market. Needless to say it is not looking good right now but I am keeping it in there for the long haul not the short run. I can buy some more stuff now while it is cheaper. That way I will be worth more when things go back up.
Billionaires Dumping Stocks, Economist Knows Why:
Warren Buffett, who has been a cheerleader for U.S. Stocks for quite some time, is dumping shares at an alarming rate. He recently complained of "Disappointing performance" In dyed-in-the-wool American companies like Johnson & Johnson, Procter & Gamble, and Kraft Foods. Ref. Source 1