Do you expect a market correction soon?

[YOUNG_TRADER]

Mkt has run hard of late, do you expect a mkt correction?

 

[Kauri]

Re: Do you expect a mkt correction soon?

I expect one every trading day, haven't been right since May, but I'm allways ready..... :frosty:

 

[stevo]

As well as "Undecided" you could have something like "No Opinion" or "Irrelevant".

What I think about the market direction is irrelevant since it has very little impact (I would like to think no impact) on my trading approach or where the market will go.

Stevo

 

[sleeper88]

if a significant amount of traders/investors "expect" there's going to be a correction, it will cause some panic selling which makes an "expected correction" a "reality"

 

[Sean K]

A pullback is inevitable. The longer it keeps running the harder the fall, eg, May/June.

Market has moved away from the long term average as shown, again indicating that it will pull back.

Blue line is how the market usually goes, red line is abnormal. Expect some examples of what has gone on in the glue circle shortly.

Perhaps the past few days are the start of a short pull back? I'm on 75% chance of that occuring. But I don't think it will last long with the lead up to Christmas/New Year.

My best guess anyway.

 

[ice]

if a significant amount of traders/investors "expect" there's going to be a correction, it will cause some panic selling which makes an "expected correction" a "reality"

Actually I always bias my trades the other way.
If a sgnificant number of traders expect a correction, they will have already sold and/or gone short. That substantially reduces the number left to sell/short which should reduce the pressure on the downside.

Works for me.....well sometimes.


ice

 

[professor_frink]

I reckon we have another 50-75 points or so to go before there is a chance for another rally. Until that happens, I probably wouldn't be buying*





*I'm usually wrong about these things, and most of my predictions of a top are good buying opportunities!

 

[Sean K]

I reckon we have another 50-75 points or so to go before there is a chance for another rally. Until that happens, I probably wouldn't be buying*

*I'm usually wrong about these things, and most of my predictions of a top are good buying opportunities!

Thanks frinky, I'll be maxing out the margin loan Monday.

 

[professor_frink]

Thanks frinky, I'll be maxing out the margin loan Monday.

wise man
I was about 4 1/2 weeks early calling shenanigans on the rally leading up to the May correction, so you should have a month or so before you have to worry bout selling

 

[nizar]

the markets holding up pretty well today.
banks showing strength.

 

[Sean K]

I'm on bread and water tonight.

Would have been rummaging through the bins with the possums tonight if I hadn't sold down the past few weeks.

 

[ezyTrader]

the markets holding up pretty well today.

That's a good sign!

 

[YOUNG_TRADER]

Looks like its started,

ZFX down 7-8%

BHP down 4-5%

XMJ materials Index down 300 points!

Parachutes anyone? I'll be waiting for you on the ground

 

[Rafa]

sold all my zinc shares... (CBH, INL, etc)
hope zfx falls to around 14 so i can buy back in.

Most U stocks are still looking good.

maybe i shoudl transfer it all into PDN!

 

[YOUNG_TRADER]

Rafa if there's a proper swing of sentiment ie correction nothing will be safe, so exercise caution

 

[moses]

Well...it hasn't been a nice day, but the market seems to be struggling back up this afternoon like it half believes tommorrow will be better. Fingers crossed!

 

[Rafa]

Rafa if there's a proper swing of sentiment ie correction nothing will be safe, so exercise caution

Yes, you are right....
The market decides the price, regardless of fundamentals.

 

[CanOz]

Well...it hasn't been a nice day, but the market seems to be struggling back up this afternoon like it half believes tommorrow will be better. Fingers crossed!

Well i'm out, got stopped out on one and took profits on the rest, time to look for some new opportunities.

 

[YOUNG_TRADER]

Very interesting article


http://www.aireview.com.au/index.php?act=view&catid=8&id=4690

 

[YOUNG_TRADER]

And this is from Mining News.net commenting on that Citic group 87 crash report


Market bears resemblance to '87 crash: Citigroup
(Thursday, 16 November 2006)

THE current investment environment is becoming increasingly characterised by moral hazards, greed, exuberant deal making and the rise of private equity, according to analysts from major US investment bank Citigroup, who have made a bold and decidedly gloomy comparison between the present and the great stock market crash of 1987.