have we seen the bottom of the stock markets
- Thread starter pokergod
- Start date
LatinDancer said:
One must be careful interpreting charts.
Look at them but only as pert of the big picture
The V could very well turn into the middle part of a W without the last part of the letter for a very long time.
What will drive a market is REVENUE & EARNINGS growth & until they show a sign of improving a major movement back to 2007 levels will not happen
I think the market has buttomed but I think we will be lucky to see the tsx hit 10000 points this year. I think we will be in a range bound market for the next few years. I belive oil will trade with the 60 to 70 range for the next 5 years. I belive that gold will be 1300 a ounce by the end of this year
I love that...shapes.LatinDancer said:
People buy stocks that make up an index...and the composite price of some of these is what the index is based on....and as stocks go up and down it makes shapes on a chart. Gotta love that.
The V might be a Y ...you never know. Or as someone else said a W. Or it might really be a U or part of an M. I think the M is the most likely.
How many of these V bottoms have we already seen in this bear market and every one of them failed?
There were numerous people calling THE bottom every time and they have all been dead wrong every time and they have no credibility and only wishful dreaming.
These bear market rallies are great for traders but there is a very good reason why they are also called sucker's rallies.
Some of the best rallies happen during some of the worst bear markets, including the Great Depression, but they are only good for those who take profits and don't get greedy.
There were numerous people calling THE bottom every time and they have all been dead wrong every time and they have no credibility and only wishful dreaming.
These bear market rallies are great for traders but there is a very good reason why they are also called sucker's rallies.
Some of the best rallies happen during some of the worst bear markets, including the Great Depression, but they are only good for those who take profits and don't get greedy.
I would dip one foot in if your currently out of the stock market. Look to diversify globally and stick to your comfort zone. Most casual investors get into the market by mutual funds but it would be wise to look at ETFs that you can trade anytime the market is open and allow you to invest in commodities and globally.
Better late to the party then show up and have there be NO PARTY.
Better late to the party then show up and have there be NO PARTY.
I agree with you that we won't see 2007 levels anytime soon, and that there are dips within an upward trend. But since I am a trader not a buy and hold investor, I am not riding stocks up and down. And the four week rally has been very nice, with the financials being particularly good. I liked BAC at $4 and did nicely with it. Have traded WFC between 12 - 16, MET and MFC (on NYSE) with buy -sell differentials of $4. My recent buys have been in gold (ABX and AUY) with recent 15% pull backs last week, as well as pharma (CELG @39, BMY @20). I must admit that I missed the RIMM opportunity because I got into Nokia (NOK) instead at 12, a much cheaper stock.JohnLarue said:
Seriously, anyone who thinks they can predict the market will always be proved wrong, sooner or later.
The trader/philosopher Nassim Taleb has developed a different approach. His system is to buy ridiculous out of the money options to profit from a large, unexpected movement in the market. For many years he will lose small amounts of money. However, when such an event occurs (usually a crash, like it just did) he will profit enormously, recouping many times his original investment.
Unfortunately, he doesn't reveal the exact details of how to enact such a strategy...
The trader/philosopher Nassim Taleb has developed a different approach. His system is to buy ridiculous out of the money options to profit from a large, unexpected movement in the market. For many years he will lose small amounts of money. However, when such an event occurs (usually a crash, like it just did) he will profit enormously, recouping many times his original investment.
Unfortunately, he doesn't reveal the exact details of how to enact such a strategy...
