- In Trade Chatter
- Last Updated: 02 November 2012
- By LA Little
When a market stumbles, it is quite common to see skepticism on the part of those that participate in it. You always here that traders and investors want to buy on a retrace to a given price levle but when price gets there, few really do buy. Why is that? It's lonely at the bottom of any move no matter what the time frame. Fear and skepticism rules at the lows.
I put an article out (see Premium Services) on MarketWatch on Wednesday morning saying it was a good buying opportunity. It was and it has rewarded those who were able to overcome their fears and actually buy something. The skeptics assumed a further fall. The optimists took the opportunity and ran with it. There are always key points where probabilities favor a particular side of the trade. It happens over and over again. You just have to be able to figure out what those inflection points are and where they reside and then look at how the market acts at those price points. Simple to say - hard to do.
Employment numbers were better than expected today and the market has pushed higher as a result. We'lll see how far it can carry now. Resistance due up very soon.