I'm going to start buying here, what do you think?

[fan27]

A note on today's closing TRIN (3/9/2004)

"On a few trivial notes, the TRIN came close to closing above 3.0, which it's only done 11 other times since 1997. Three days later, the SP500 was higher all 11 times, with an average gain of +2.5%"

http://www.hardrightedge.com/tradewinds.htm

 

[prox]

Quote from Sharp:

How much cheaper do you think it will get and why?

In my mind if we break these levels I will be looking for shorts not longs.

Right, we're nearing that prior swing low on the daily and if that fails to hold.. then the entire complexion of the bull market is in jeopardy. This area should make a stand out of respect of the past 2 years or die trying.

 

[Manolo]

Quote from Sharp:

Here's my thinking

The 2000 level is the key. When the market was going up all the shorts started selling at the 2000 level. Once we went through that level I would bet that some of the shorts held tuff; this will be their first chance to get out even. On any bounce what-so-ever I see most of the shorts heading for the door. If I was short I would get out here. Plus you have that strong support line. If nothing else I think you see a bounce here just from the support, and that bounce could turn into a big rally if it drives out some of the shorts. I also see a bullish divergence in my RSI. And, many of the strong stocks that I have been looking at are still strong. I'm going to start buying stocks tomorrow for sure.

The Nasdaq just looks like a short-term trade. The market may head back down but I think we could move higher throughout the week and maybe into next week.

I respectfully think you are wrong. This will not be a time to "buy the dip". The market is on the verge of a correction.

 

[waggie945]

That is a great post and something certainly of value.
Keep up the good work, we need more posts like that on ET!

 

[lindq]

Quote from Manolo:

I respectfully think you are wrong. This will not be a time to "buy the dip". The market is on the verge of a correction.

However, historically the S&P has shown some strength after these pullback levels. Typically when the S&P pulls back to a 10 period Raw K level of 15 on a daily stochastic, it will follow up with a rally. Personally, I use this level to heavy-up on good stocks that are also pulling back.

 

[waggie945]

The NAZ has already been correcting in both "price AND time" for roughly 7.5% and seven weeks. The second quarter of the year is always the weakest for the semi-conductor industry. Thus, the pullback in the chip stocks. Once the market starts to look further out, chip stocks wil undoubtedly rally out of their current oversold condition.

Meanwhile, the S&P has done nothing other than pull back from some strong resistance at 1158. With the 10-Year TBond trading at 3.72%, it's pretty hard to see money leaving equities, unless you are making a bet that the economy is heading back into a recession.

 

[areyoukidding?]

Why ask anyone else opinions? We wouldnt help you if you were wrong and most will be relieved they are not in your situation if it goes wrong.

If you need friends buy a dog.

 

[areyoukidding?]

If we all thought now was a buy (which i think it is NOT), that mkt would surely go lower. You should know this already, the penny scalpers rarely win.

 

[areyoukidding?]

the penny scalpers rarely win.

 

[Manolo]

Quote from waggie945:

The NAZ has already been correcting in both "price AND time" for roughly 7.5% and seven weeks. The second quarter of the year is always the weakest for the semi-conductor industry. Thus, the pullback in the chip stocks. Once the market starts to look further out, chip stocks wil undoubtedly rally out of their current oversold condition.

Meanwhile, the S&P has done nothing other than pull back from some strong resistance at 1158. With the 10-Year TBond trading at 3.72%, it's pretty hard to see money leaving equities, unless you are making a bet that the economy is heading back into a recession.

I guess we can agree that we disagree.