Baffled

Originally posted by Jim Bartley


Funny you mention this. Yesterday I got my semi annual report on a mutual fund I have in my retirement account. I normally toss these, but decided to give it a look see, just to see what they owned etc... The thing that really stood out was how well this fund had out performed the SP500 over the past few months. It got me to thinking that maybe this could signal there are once again some opportunites to the upside. A sort of divergence. Maybe as result of the great bull market that ended in 2000, investors have a Pavlovian response to indexes vs individual stocks. The Dow is down, the Naz has lost 75% etc..If you only watch CNBC or read the newspaper, eveything is in the toilet, but the reality is quite different. Its like the old saying..."you can't see the forest for the trees" only in reverse..."you can't see the stocks for the market". I think we may be entering a time where the indexes probably won't do a whole lot one way or the other, but some stocks will.
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And this makes sense to a certain extent doesnt it? With the ways in which the index weighting favored about a dozen stocks in the NAS towards the end of the boom, once they blew out their positions and outflows became the norm, the biggest titans were the ones who got killed...The stocks that have been marked up the most have not really been correlated to the SPX because they are smaller and less liquid issues that have just gone thru the roof..Restaurant stocks are a prime example...
 
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Originally posted by mattjclark
Today we blew through resistance. I thought for sure we would retest 7600 before we closed above 9000.

Anyone else as disillusioned as I am?

Could it be the Plunge Protection Police or was I just wrong?
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As long as you attempt to guess at what the market will do, you will remain disillusioned. And headed for the poorhouse.

You trade what you see - not what you think.
 
Originally posted by silk
The dow will have to retest dow 7500. NOT.

Did the Nasdaq retest resistance at 5000. Nope.

This is the same thing.

The market was clearly at disequilibrium at 7500, thats why it spent a whopping day at those levels and has risen nearly every day since.

In any event, this question is a little late. It was more relevant when dow was 8000 or 8200. The market is now up over 20% from the bottom, thus clearly no retest.
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DOW 7481.82, after being up +150.69.

nitro
 
We have had 2 bear markets and 1 bull mkt (20% move) in the last 3 months. Never seen mkt like this. There is alot of money to be made with this volatility. I'll be happy to be proved wrong a 2'nd time. Give us one more retest. LOL.
 
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