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A place for friends to gather and view stock market charts, discuss technical analysis and market outlook. What is your Principal Asset? How can it be developed? Each and all should do their own due dilligence and homework before investing. And by no means should you use anything I say or show here as a sole basis to buy or sell securities as everything is for educational experience only.

Tuesday, September 30, 2008

1/2 way house or bounce?

I had a hard time getting my back test software to yield data on specific days of percentage loss and the following day bounce. I did manage to get the Total retracement levels of the worst historical falls. Granted the 2007-2008 data may be incomplete it does give some perspective.

Solid Bounce that it is....is nothing to get overly bullish about. Markets are still underneath short term moving averages. However, roughly 1/2 of yesterday's fall was recaptured as the Bernanke, Paulson , and the bailout boys work feverishly to come to terms and "Calm" the financial markets.

The SPY daily still in a Bear trend
QQQQ still well below day EMA...

Patience, patience, patience.....wait for the other half of the bounce and either get out or get neutral and set up for the barrage of BAD earnings coming in approximately 3 weeks.
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