I'm calling it - The DOUBLE-TOP Is In

[Mach4-1]

Quote from GOP_trader:

People that keep buying in this market are just helping obama. This market is too high and the stimulus is not working.

maybe u are right..never thought of it that way..he is supposed to be a nice person by all accounts

or..maybe it is just the wheel of finance turning..as it always does..and as it always will..for without the wheel of finance turning we would have no stability in our governments..which in turn would lead to anarchy and revolt on a worldwide scale..and fling us back into the dark ages of ignorance and stupidity:eek:

what is..is..and what will be..will be

matter it not what we say..but matter it most what we do

he who will do right..will prosper..and he who will do wrong..will falter

do what is right..what is right for u..not for others

a blind man can hear, feel and think..much better than a man with 2 eyes..so the next time u are wondering about something..ask someone who really can't see..and u might just be surprised at what u might hear..really:eek:

 

[Petsamo]

Quote from GOP_trader:

People that keep buying in this market are just helping obama. This market is too high and the stimulus is not working.

I'm a conservative; I'm still long because I'm in it for ME, not Bam Bam! I will sell if I get pressured.

 

[S2007S]

1120 is what every talking head is babbling about, then 1300 then 1600.

The economy is no where near it was like it was in 2007, yet everyone is forecasting higher earnings and huge upside in stocks. The top will come when it's least expected, by the time you realize the top is in the markets will be down over 25%.

Markets are very overbought however when trillions of dollars are pumped into the system the only way is up, sooner or later what goes up ALWAYS comes down. No one in a thousand years would have ever predicted Dow 10000 or 8000 two years ago.

 

[psychonin]

Intraday price action indicates there was buying near the close?

 

[ForexForex]

Quote from the1:

Tops are not driven by technical events, they are driven by news or changing economic events. If a top occurs in the fashion you have illustrated it will be pure coincidence. Technical Analysis has very little value.

"Tops are driven by news"


Nope ...... News is driven by tops. The economist's will use the news during tops or bottoms as a reason for that top or bottom. If today is indeed a top and the market tanks then perhaps the reason could be "Oil, fuel prices jump as dollar, temperatures fall".

 

[sub0]

Quote from ForexForex:

"Tops are driven by news"


Nope ...... News is driven by tops. The economist's will use the news during tops or bottoms as a reason for that top or bottom. If today is indeed a top and the market tanks then perhaps the reason could be "Oil, fuel prices jump as dollar, temperatures fall".

I agree with this. They dump out 20 or so "top stories" a day and if it goes up or down, they pull one and say that's why.

However I do think the stock market acts kind of like a living organism or highway. If there is a bottleneck stopping traffic somewhere, or enough wrecks, it will cap it off and everyone will get pissy and will start selling. News is nothing but information and isn't important unless people pay attention to it. Bad news has been coming out steadily on certain banks and people ignore it. Nobody sells until they get pissy and start losing money.

This optimism is the best thing to happen to bears. We are finally getting back some more volume and some more buyers who will fuel the selling down. Everyone knows these are the suckers buying at the highs. We are getting some serious volatility again. It's allowing everything to quickly touch it's highs and clear that psychological feeling some people are waiting for. It also reminds people now psychologically what happened last time it was here. They then HOPE it goes higher, any sign that it isn't, and they all head for the door at once to sell at the BEST price. Everyone wants to sell at the high but they forget that only a few people want to buy at it. They will confuse buyers with traders who quickly turn on them and start selling.

 

[schizo]

It remains to be seen whether this is the TOP or not, but ya gotta give me some credit for calling it while the market is still going up--not like those who call it after the market drops.

 

[saliva]

Alright, I'm issuing a cease and desist against ya bunch of clowns. No more of your half baked smartass comments until next week. We shall see where this damn market will be trading then.

 

[MandelbrotSet]

Quote from saliva:

Alright, I'm issuing a cease and desist against ya bunch of clowns. No more of your half baked smartass comments until next week. We shall see where this damn market will be trading then.

You may not like it saliva (I know I don't), but Nexen actually gave the best definitive answer of how to define the top using TA.

And the reality is the markets most definitely are not driven by news, they are driven by fundamentals.

In the case of the S&P500, while the situation looks bad for the US populace (and it is) business was driven down so badly, and at such low valuations vs. their potential earnings, we couldn't help but get this Bear Market rally (which is all it is).

Now, is that a valid top? Don't know, don't care, as I only trade intra-day, and never hold overnights. But the fat lady hasn't sung yet, and coming into Tuesday's Open (10/13/09), I'm not 100% sure if she will or not ... but I'll bet dollars to donuts that Buy1Sell2 gets stopped out of his short position.

Good trading

 

[sub0]

Quote from MandelbrotSet:

I'm not 100% sure if she will or not ... but I'll bet dollars to donuts

Donuts sound good right now. Think I'll go to the store.