Friday, October 28, 2005

Glorious Day

Do you ever feel like the up days put you in a good mood while the down days put you in a fowl one? Of course, that is exactly the type of emotions that we should supress as traders. The market will continue to fluctuate, so don't feel too good about the up days, and don't let the declines get you down. Just do your research, manage your risk, and find opportunities to profit.

That said, today was a really great rally. Volume was strong, and the markets reversed their early weakness and then some. Everyone I know thought that today would be a down day, and that GDP would probably disappoint. Well, the exact opposite played out. And when the market does the exact opposite of what it is setting up to do, we should take notice.

I have been calling for a bottom for weeks now, and it is looking more and more like the low on Oct. 13 was THE low. If the SPX can take out its overhead 200-day next week, I think the market could be off to the races.


At 5:52 AM, Blogger CHH1 said...

To demure, the upside potential 'to the races' doesn't compare well to the downside to the cleaners. Intermediate trend down with individuals, those sheep, taking money out of mutual funds at the top. Unusual to say the least but remarkably common sensical.


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