So is the 'correction' over?

[rederob]

Continued volatility in base metals, precious metals and oil are tell tale signs that the "correction" is far from over.
Another major dip would shake out the speculators and return value to these sectors.
It used to take many months for copper to add $500 per tonne to its price, but at the moment it can trade in a wider daily range and the market barely blinks.
Silver and gold can move 2-3%, both ways, within a few hours and nobody is saying the sky is falling.
The FTSE and Nikkei are yoyoing a few percent day to day and things remain so-so "because the correction is over".
Complacency is the biggest danger right now and vigilance the only defence.

 

[GreatPig]

I have to say that despite still thinking the XAO could continue to fall to around the 4850 area, a lot of the individual stocks I monitor are starting to show signs of forming bottoms.

I've swept the cobwebs off my buy button and given it a grease and oil change, but I'll be watching closely next week to see how it goes, possibly buying into a few of the more stable stocks if the signs look good.

However, my trading system won't start issuing buy signals for probably a week or so yet even if the market does pick up well, as it includes an EMA cross-over of the XAO which will likely take at least that long to happen. If that XAO mask wasn't there though, quite a few of the stocks are already showing buy signals.

Cheers,
GP

 

[Sean K]

GP, can you post that crossing of EMA of the XAO here when it happens? Cheers.

I agree there is a lot of value appearing for long term investors. Still, a lot of volitility too though. I think that needs to slow down a bit before I can buy with total confidence again.

 

[Porper]

I have to say that despite still thinking the XAO could continue to fall to around the 4850 area, a lot of the individual stocks I monitor are starting to show signs of forming bottoms.

I've swept the cobwebs off my buy button and given it a grease and oil change, but I'll be watching closely next week to see how it goes, possibly buying into a few of the more stable stocks if the signs look good.

However, my trading system won't start issuing buy signals for probably a week or so yet even if the market does pick up well, as it includes an EMA cross-over of the XAO which will likely take at least that long to happen. If that XAO mask wasn't there though, quite a few of the stocks are already showing buy signals.

Cheers,
GP

I am totally out at the moment.Cash locked firmly in the bank.

The general consensus amongst experts semms to be that the XJO would need to trade below 4700 before we enter a bear market, so still a long way to go.However having said that all markets are volatile at the moment so for short termers like me, too much chance of getting stopped out so I will watch from the sidelines, apart from the odd 1 or 2 day trade as I did with a stock midweek, just to keep my hand in.

 

[GreatPig]

can you post that crossing of EMA of the XAO here when it happens

There's nothing generally special about my EMA crossover. It's just a couple of numbers that some backtesting indicated gave better results, and would only apply to my particular trading system. It just uses the crossover of 2 day and 19 day EMAs (the 2 day one could just be the close, but my backtesting was only trying EMAs).

Porper: I'm mostly out right now too, just holding a couple of stocks in my investment portfolio. If I do start buying again next week, it will mainly be a few investment stocks and perhaps a few trading ones for hopefully short-term gains. I certainly won't be jumping straight back in with both feet .

Cheers,
GP

 

[Captain G]

How do people see things at the moment ?? Is it relatively safe to go back into the water, so to speak ?? Or should one wait for a few months for US inflation to be tamed & interest rates to settle ??
Cheers, Capt.

 

[lewstherin]

US Fed meeting is late next week. I'm considering some short positions in the lead up to that, since I would expect the markets will pull back a bit to absorb the impact. The last round of selling that happened shows that there is still fear in the market, and the past few days worth of rallies have done much to regain the losses.
I guess the question will be, has the US market overbought where it needs to be for the rates rise?

At this point I'm hardly watching the local market as far as resources go. Its all about the Fed for now.

 

[GreatPig]

GP, can you post that crossing of EMA of the XAO here when it happens?

It's happened today.

But please note that there is nothing special about my crossover, which is for 2 day and 19 day EMAs. They are just figures that seemed to work best with the rest of my system.

It is interesting though how the current bottom is mostly sitting right on the 180 day EMA.

Cheers,
GP

 

[Granny]

What correction?

 

[wayneL]

What correction?

LOL

It was just a small matter of about 10% reduction in the entire value of the market, just a blip......







......compared to what comes later :batman:

 

[Granny]

LOL

It was just a small matter of about 10% reduction in the entire value of the market, just a blip......


......compared to what comes later :batman:

Really sonny? Should I get those gold bars out from under the bed?

 

[wayneL]

sonny

LOL

 

[stockmaster]

I believe the correction has ended and the market shall react with a postive movement.

1) Gold price has resisted with a low of $540 and currently back near $600, i strongly believe US will increase its increase to stop its economic growth and also due to other world influence, gold price shall increase which will influence other commodities.

2) Dow Jones has surpassed the 11000 point which i believe is a turning point for the next wave. There is evidence a strong postive movement for the All Ord for the next 3 months.

 

[brerwallabi]

Except those discretionary spend retail stocks who will continue to struggle as the impact of increased petrol prices persists. Look at Repco (RCL) $1.60 to $1.25 after annoucing a downgrade of profit are there a few more companies out there who will disappoint?
Methinks there is.