Oh My Goodness .......
If there were accusations of the Aus market extending beyond fair valuation during the bull-run, then I make the accusation the Aus market has moved far below fair valuation.
Woops, thought this would find support around this time... today in fact for some and tomorrow for other stocks... Oh well, can't always get 100% of the move now can you?
This will be interesting to watch.
On the contrary, my comments were out of fear for short positions… and I was acting totally as a chartist looking at the bars…So I guess your support wasn't really support either mag?
On the contrary, my comments were out of fear for short positions… and I was acting totally as a chartist looking at the bars…
Actually the support did occur, pretty much to the point, but that support was temporary, as I stated. The concept of support is not immutable and is only relevant in time, just like resistance works, but can be overcome even the next day. It all depends on the pattern.
In my style “time angles” may be broken and recovered, they are not like trend lines, and my time points are still in the future, and they are quite reliable, but not infallible…
Panic moves are an exception, or very buoyant bull moves. McLaren identifies this as “pitch” overcoming support and resistance in time.
Hence you are absolutely right, in these times support and resistance projections become problematic… But this market hasn’t hit key time and price increments since 10th August…
But the start of this bear drive was projected for the S&P 500 to the day from about a month out (but got the price wrong – time is my strong suit, not price). So my style works in specific conditions, but not all the time. Same goes with Elliott Wave and other styles.
Equally projecting where this market is likely to go to is also possible (probably more in time than price – but not yet, when a counter trend comes in is required). In the interim when the price action is in between time and price increments, trying to work out what will happen each day is challenging and not a strong suit of mine…. I do know some people that are proficient in intra day analysis. This is not my strong suit. I’m geared for position trading.
So, yes, projection support at this point in time is highly problematic, I will concede that. But longer term support is a different matter. A lot depends on your style, doesn’t it?
Mag
"The concept of support is not immutable and is only relevant in time, just like resistance works, but can be overcome even the next day.
Nice analogy! Good point, and agree fully...It's just that a lot people seem genuinely surprised when their supposed support lines don't hold - a bit like the French with the maginot line.
All Ords down 250 for the day, so far. That sure does sound like capitulation, and it doesn't sound very nice.This is now a capitulation in progress, and who knows where the bottom is.
Dhukka,
Instead of taking cheap shots at TA why don't you tell us when this will bottom or counter rally to continue down.
or don't your pretty Little PE's and company reports tell u that!
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