Originally posted by Seanote
Excluding outside factors other than the economy itself, it is a mute point that we will decline over the next couple weeks/months. This rally has generated from little and insignificant economic news and most importantly on LOW VOLUME. There is no news or volume to sustain these levels and when Wall Street, analysts and CNBC finally swallow their pride they'll admit we're beginning the second leg of this bear market as I mentioned in a previous post a month or so ago. This 2nd leg will set new lows, then we'll rally some. The 3rd leg and final leg of this bear market may not hit for 6 months or a year, but when it does...... Imagine when you can buy QQQ @ $13 and MSFT @ $30. All the market technicians (most who are in their late 20s and 30s) keep looking at TECHNICAL trends and signals. They don't realize, which a more experinced trader would, is Market Sentiment is the main force, especially in a bear market. Who's pumping money towards long stock for the long term right now? I don't know anyone. Portfolio managers keep hyping this bull rally because they "feel" they have to do something. Deep down they have the same feeling I do about this market but they sure as hell can't tell their clients/share holders that and sit tight on losers. Their last resort is to go on TV and attempt to convince everyone how much this rally will sustain and make sure you don't miss out on these historic buying opportunities. We can decipher thru their BS and stick with our strategy and sentiment because we only report to ourselves. Those guys should be locked up for disseminating their information and lack of cajones! I bet if we looked at their "other" accounts, ie. parents, friends, partnerships..... all you would see is SHORT SHORT SHORT.... and some puts.
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