Friday, April 17, 2009
Correction HO ?
SO WHAT IS YOUR COMMENT OR QUESTION ON THIS CHART -> see section below:
So the question becomes? Is the data depicted on the chart, showing us a TOP Area or a Bottom Area? Hint -> The area in gold, occupies the TOP of the chart area now.
Can we experience something that will save the market from a sharp drop? Yes, we can have a flat correction. Looking at the data, I'd say we are in an extended top, rather than a flat correction. The drop beginning January, took TWO [ 2 ] full calendar months to run its course. The rally before that took 1 Month bottom to top.
This last rally took, so far 6 weeks, so nothing is out of balance here, yet.
Therefore, IMO, a correction, decline or consolidation could take 1-2 mo's whether this is a bull or bear market. Lets look at how the Media is talking up this rally, and yet again, priming the public to EXPECT that the market could rally next week, on the back of this last advance. I'd have to refer back to the above chart. Could the market rally next week ? Could it go somewhere? Yes. Could it go to 10.5K from here? Not likely, IMO, before a correction / consolidation.
What did I do this week? Sold merger candidates, and other stocks that ran on news.
What sectors did I buy this week? Natural Gas, Coal & Uranium. Sectors I sold: Energy and Precious Metals.
Whats in your wallet?
Good Luck All,