Stocks for the Rest of Us
Is The Stock Market Bottoming? Volatility At Market Extremes Can Sometimes Indicate A Trend Reversal
While the volatility lately has been un-nerving there is a bright side. I think we might have found a bottom. it may not be THE bottom but I think it’s definitely A bottom. We’ve finally found a level where the bulls were willing to step in and buy in a huge way. When we got to around 8000 in the DOW we saw the market rebound violently. This is good news; It’s finally a battle. I don’t know what it is or why it’s at that level but there’s no denying that at 8000 there are buyers. Keep that in mind.
I haven’t done much in the past few weeks other then a few small trades to try and make a couple bucks. My style of trading doesn’t work well in this volatile environment so I just stand aside and wait it out. Once the volatility subsides I will begin to step back in and make more trades. Right now we’re in a bit of a trading range here but unfortunately it’s nearly a 20% range on the major indices. Definitely not an environment in which stop losses are effective.
| Print article | This entry was posted by brian on October 18, 2008 at 12:14 pm, and is filed under Index Notes. Follow any responses to this post through RSS 2.0. You can leave a response or trackback from your own site. |
about 1 year ago
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