Picking Tops.

Quote from Learner:

He is busy of cutting the losses
More...

:)

...On Monday S&P has declined to a 2 day low
Whyohwhy proclaimed he was right wow wow wow
When S&P reversed and bulls came charging in
They took his dough, his car and his ET log-in
 
Seems you're right romik. It's tough trying to make a profit as a prophet - perhaps he could try life as an escapist. Nothing bad about making a wrong call - just don't remove the post when you're instructing a newbie on how certain you are in your ability. A wrong call is all part of his instruction.
 
I mean he could be right and the market might decline today, but going around making suggestions to people uncertain about analyses like 'just short it Monday' - is a stupid thing to do.
 
What could be interesting is if we turn down late today and sell off the next couple-- it would be a reaction to this ridiculous M&A activity. The overseas markets have begun to realize that something is up. Bubbles pretty much everywhere- the last time we had this much takeover action was off course the internet top. It's a fallacy I belive to make an valuation judgement on the market based off companies eagerness to buy each other. If Freeport wanted PD so bad why not make a bid a month or so ago when it was trading in the high $70's?
One thing to keep in mind is last years end of year action we had our Santa rally going into Thanksgiving and for a day or two after we got back then we went down until the new money came into the market after January. It feels the same this year.
 
These are my estimates for levels where a pullback might be a lot more possible than right now based on the daily chart. Possible divergences might occur at the following levels:

Dow30 12425-12440

S&P500 1420-1430

Russell2k 800

Nas100 1820

I haven't got a clue if these divergences will occur though, just an estimated probability looking at the daily chart formations at the moment.
 
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