Imminent and severe market correction

[dj_420]

DJ.

The rest of the (DOW, DAX, FTSE, HS) markets haven't seemed to change a whole lot, so why do you think the Indian market will lead????

Though the SPI has traded down since the 11Oct...????

Thanks
SevenFX

We have seen a number of times DOW futures pointing to up and a large turnaround during trade. Surely some large negative movements will cause some sort of movement.

I could be wrong, but its very hard to find bargains in this market and we were nice and cheap only two months or so ago. I have done ok picking some cheap blue chips and bailing after a small recovery.

I am still long select positions, but have more been focusing on short term trades taking 5-10% here and there.

 

[sassa]

" The bears point to lagging breadth, a dearth of new highs, sub-par volume, and the fact that Lowry's Buying Power Index, which usually leads the major averages in bull markets, is now scraping along near a six-month low. Furthermore, Lowry's Selling Pressure is not only dominating the Buying Power, but as of Friday's close the Selling Pressure Index was a full 95 points above the Buying Power Index. Thus, according to the bearish argument, all we're seeing now is some kind of a low-volume blow-off preparatory to a final stock market top."
Anyone know anything about Lowry's Buying Power Index and Selling Pressure?

 

[sassa]

The overseas markets in the last half hour have appreciated considerably.The FTSE has shot up .7%.
The S&P futures has increased from 5.3 to 9.6 and the Dow from 36 to 64.
What's going on?

 

[Whiskers]

The overseas markets in the last half hour have appreciated considerably.The FTSE has shot up .7%.
The S&P futures has increased from 5.3 to 9.6 and the Dow from 36 to 64.
What's going on?

Someone got a leak on the US CPI figures out shortly!

 

[sassa]

Someone got a leak on the US CPI figures out shortly!

But the consensus on the cpi is +0.2 with the core +0.2.This would not warrant the increase in the futures that is happening.
The S&P has risen another point and the Dow an extra 14.The Ftse has reached 1% from 0.1% 45 minutes ago.
This is a very strong surge.

 

[Whiskers]

Seems like stronger than expected US company profits on top of lower base metal prices.

http://www.reuters.com/article/hotStocksNews/idUSL1625707720071017

Geeez, I was expecting lower profits and a bit of a retrace.

 

[sassa]

Seems like stronger than expected US company profits on top of lower base metal prices.

http://www.reuters.com/article/hotStocksNews/idUSL1625707720071017

JPMorgan and Coca Cola results have come in much stronger than expected.I would imagine along with Yahoo and Intel from after market close yesterday,the market is ready to pounce on any positive rather than negatives.I would have to say that if this increase in the S&P,Nasdaq and Dow continues,we will certainly have an imminent market correction in the plus tonight.

 

[>Apocalypto<]

JPMorgan and Coca Cola results have come in much stronger than expected.I would imagine along with Yahoo and Intel from after market close yesterday,the market is ready to pounce on any positive rather than negatives.I would have to say that if this increase in the S&P,Nasdaq and Dow continues,we will certainly have an imminent market correction in the plus tonight.

so on good news we are going to correct??? tonight?

follow the charts sassa, follow the trend until it changes. unless you have a type of time analysis to determine turn dates like a couple of members in here i chat with.

best thing to do is follow the trend until it starts to change it's behavior.

my

 

[Whiskers]

CPI came in at .3 for Sept.

Consumer prices increased at a seasonally adjusted annual rate (SAAR) of 1.0percent in the third quarter of 2007, following increases in the first and second quarters at annual rates of 4.7 and 5.2 percent, respectively. This brings the year-to-date annual rate to 3.6 percent...

http://www.bls.gov/news.release/pdf/cpi.pdf

 

[explod]

so on good news we are going to correct??? tonight?

follow the charts sassa, follow the trend until it changes. unless you have a type of time analysis to determine turn dates like a couple of members in here i chat with.

best thing to do is follow the trend until it starts to change it's behavior.

my

Spot on Trade It. It has been mentioned before but worth repeating and one of the best stratiegic books for investing/trading I have ever read:- "Thrend Following" by Michael Covel, Prentice Hall 2004

Once you get the idea right you can set up fixed criteria for indentifying, entering, holding and exiting a trade, stick to the criteria/perameters you work out like glue and investing becomes safe and childs play. I apply the principals not only to the particular stock but also it's specialty. When the price of cheese is going up pick also the best trending/stratiegically placed cheese producer

 

[sassa]

best thing to do is follow the trend until it starts to change it's behavior.

And what happens if it crashes overnight?

 

[explod]

And what happens if it crashes overnight?

That has rarely happened. There are usually signs. EG Bank stocks have levelled out over the last few months, so you would be out of them.

If the stock market was to crash 10% tomorrow BHP would go with it to some degree and you would have to sell. But as a good trend follower on BHP you are already up over 60% for the year so where is the problem. You just need to keep your focus on the quality stuff going in the right directions.

A great trade going at the moment for me is AVO, I have recently taken some profit and reduced but if there was a big crash tomorrow I believe the nature of this one would not be effected too much because the gold price is also in a big uptrend

A saying going back a long way "The trend is you friend untill the bend"

It is funny, it took me a lot of time, losses and years to realise that the best investment methods are the simplest.

 

[>Apocalypto<]

And what happens if it crashes overnight?

lol I will eat my words!

as u can see in the chart yes it has failed at the top retreated very quickly, no surprises to see a rally here but look were that rally starts from, some solid minor support there backing it up. Trend line is a Gann line showing 45 degree angle in the trend, price is moving back to that line (my personal Gann observation). that Gann line is not Calibrated to be a time point. that infomation is for this time point I am not sold bullish yet on the dow. higher low will show something more concrete.

but Sassa anything can happen in the last hour on wall st!

good trading!!

 

[nikki]

" The bears point to lagging breadth, a dearth of new highs, sub-par volume, and the fact that Lowry's Buying Power Index, which usually leads the major averages in bull markets, is now scraping along near a six-month low. Furthermore, Lowry's Selling Pressure is not only dominating the Buying Power, but as of Friday's close the Selling Pressure Index was a full 95 points above the Buying Power Index. Thus, according to the bearish argument, all we're seeing now is some kind of a low-volume blow-off preparatory to a final stock market top."
Anyone know anything about Lowry's Buying Power Index and Selling Pressure?

does this index tell you much about the psychology of the current market?

not sure if i am right but i much prefer to be guided by the VIX (http://finance.yahoo.com/q?s=^VIX&d=t) which trades between 15-20 in bull market conditions.

a few minutes ago, it was trading at 18.5. in August at its worst it was trading @ a high of 37.

 

[nikki]

can you have severe market corrections when clearly not all sectors of the market look the same.

this report on bloombergs clearly highlights the strength in the commodities: http://www.bloomberg.com/apps/news?pid=20601109&sid=atKzfe69gP1E&refer=home

 

[Whiskers]

Originally Posted by sassa
And what happens if it crashes overnight?

lol I will eat my words!

but Sassa anything can happen in the last hour on wall st!

good trading!!

Looks like The Dow's a gonna now at -94. Can't se her coming back from here.

The damn thing has been following POG and POS almost to the minute all night again. Is this an idiosynchrocy or an idiot-synchrocy.

Not sure that it's a crash yet. I guess we'll se in the morning. Off to bed in peace now.

 

[nikki]

The damn thing has been following POG and POS almost to the minute all night again. Is this an idiosynchrocy or an idiot-synchrocy.

Hey whiskers. what is POG and POS?

 

[wayneL]

Hey whiskers. what is POG and POS?

Price Of Gold

Price Of Silver

... and for future reference:

Price Of Oil

 

[nikki]

Price Of Gold

Price Of Silver

... and for future reference:

Price Of Oil

thanks for that. do you have a site you use to stream these prices?

 

[wayneL]

thanks for that. do you have a site you use to stream these prices?

You wont get Live prices unless you have a futures brokerage account, or pay for them.

But if you go to my blog at the link below, there are dynamic charts to most futures contracts (delayed between 20 mins and 1 hr) on the right menu bar at the bottom.

Read the directions there.

Or try this link: http://sites3.barchart.com/pl/ibnetwork/

It will say Unauthorized Access, but just press the "Go" button on your browser and it will come up.