Steady declines into the close
From the early bell, this market just couldn't get any traction. This is week 3 or 4 depending on how you want to count it, of a sideways type action. That's plenty of time for the market to find itself and put it's best next leg up jingle into place. If that doesn't happen pretty soon, then the worriers will indeed start to fret and they will likely sell and that will likely cause a little more selling and pretty soon, you have a lot more selling. It's herd mentality you know since no one (or practically no one) really knows what this paper we buy and sell is really worth. Anymore it's buy here and sell there or sell there and buy here; it's not about value as much as it is about gaming. Now that likely will turn a few folks upside down and question my late year sanity, but isn't that what TA is all about? It's about using patterns to clumsly predict what the herd is going to do. Making money with TA is taking that knowledge, wrapping some money management around it along with some simple probabilities and then clicking the mouse with your buys and sells.
In any industry you look at, you can either approach it from the standpoint that it's really complicated and too hard to understand, or you can say to yourself that, other than the constant flow of abbreviated buzzwords and folks scurrying from here to there, it's really fairly simple. I've found that most things in life can be learned by most people; you just have to have the confidence to try and lack the fear of failing. This thing called TA is no different. It's really not that complicated after all. Like most of the soft sciences, it tries to get a grip on what people will do and what the repercusions of those mass movements might be. Not a lot more or a lot less.
Anyway, back to thoughts on todays market. It pretty much was a series of failures across most sectors today. Technology in general along with the small caps were under the most pressure and typically that's not a very healthy sign. I've seem some writings recently suggesting that it may be the case that the small caps have had their run and it's time for rotation to the big caps. I do remember that in the late stages of the bull market that turned into a bear market throughout the seventies, that was indeed what happened. Back then they called them the Nifty Fifty, fifty big cap stocks that ruled the roost and defied logic. The rest of the market pulled back but they kept the indexes up due to their large cap size and the fact that the safe money kept buying into them. Of course they collapsed eventually, but on Wall Street, it's not about value (as I said above), it's about perceived value like most things in life. Thinking that one a while and you'll see what I mean.
I'm out of here. Don't forget to check out the new service, Smart Charts, where you can become more interactive in your TA future. As I've shown here for over 4 years now, TA along with simple probabilities and active money management is successful. It's really not a fluke as some would have you believe.
In any industry you look at, you can either approach it from the standpoint that it's really complicated and too hard to understand, or you can say to yourself that, other than the constant flow of abbreviated buzzwords and folks scurrying from here to there, it's really fairly simple. I've found that most things in life can be learned by most people; you just have to have the confidence to try and lack the fear of failing. This thing called TA is no different. It's really not that complicated after all. Like most of the soft sciences, it tries to get a grip on what people will do and what the repercusions of those mass movements might be. Not a lot more or a lot less.
Anyway, back to thoughts on todays market. It pretty much was a series of failures across most sectors today. Technology in general along with the small caps were under the most pressure and typically that's not a very healthy sign. I've seem some writings recently suggesting that it may be the case that the small caps have had their run and it's time for rotation to the big caps. I do remember that in the late stages of the bull market that turned into a bear market throughout the seventies, that was indeed what happened. Back then they called them the Nifty Fifty, fifty big cap stocks that ruled the roost and defied logic. The rest of the market pulled back but they kept the indexes up due to their large cap size and the fact that the safe money kept buying into them. Of course they collapsed eventually, but on Wall Street, it's not about value (as I said above), it's about perceived value like most things in life. Thinking that one a while and you'll see what I mean.
I'm out of here. Don't forget to check out the new service, Smart Charts, where you can become more interactive in your TA future. As I've shown here for over 4 years now, TA along with simple probabilities and active money management is successful. It's really not a fluke as some would have you believe.
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