Monday, August 17, 2009
8/17
I did not post anything last week because I was expecting a correction and was not going to initiate any long positions. The selloff that I was expecting at 1020 seems to be underway. I expect it to get to 930-950 before buyers will come in. We could see intraday bounces on the way down but a sustained rally is not likely unless we test the support.
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7 comments:
Well predicted Sir!!!
Has the bull rally started or is it going two steps behind and one step ahead??? What do you think?
Sid
Let me rephrase my question. do you think the pull back has occurred or do you think that there will be a zig zag correction winding down
Sid
Sid,
I still think that we will get to 950 but as you can probably tell that it is almost impossible to get it right all the time. Therefore, it is a good idea to sell some as we approach resistance and ride the remaiming, this way if the market does go higher we have some left. Even if we go higher from here, the market will test 1020 which will be a good place to add to the positions.
i hope this will hold in coming weeks...do not want to loose hard earned upsides :) ...can not decide to increase position or to take some profit...thoughts?
IntoStocks,
That is tough to decide. I guess it depends on how many stocks you are holding and if you are using margin ot not. The way I like to buy it is by using the margin when the market is at support and sell some so that we are not using any margin as we approach resistance. This way even if the market pulls back to the support, you'd have made some money. People start buying more and using margins when the market is going up and once it corrects, they get out with a loss.
We are in a bull market and if you can handle the fluctuations, stay with it.
good call there.
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