i am 72 and have witnessed lots of scary situations in market, the banking melt down the worse. All events have ended up being buying opportunities for good companies, just buy the dia or spy . Getting shook out is my worse enemy. As long as you are collecting good dividends, it really don't matter that much in the long run.
Hi, Jack-o....get a life, WOW!!! Start using some lubricant
Just another 700 points to go before a bounce.
Sentiment: Strong Sell
Thanks, I hope you are right. I also hope that they do a new high and then tank the markets. I feel that earnings are going to be in trouble, but then there is so much easy money with top 60% of the people that nothing can stop them from holding the stocks through bad earnings.
I've heard (don't know) that a 10% trailing stop is common ground and widely used in the equity markets. If US indices approach the October lows that threshold could be exceeded making your estimates a possibility. Some aspects of RSI and MACD are currently bearish however the long term uptrend remains in tact. The first signal of an approaching DIA decline is a confirmed close below ~ 180 which is a new support zone per the recent December 2014 highs and channel breakout . Prices below ~180 fall within a sideways channel that has developed from Dec/14 to ~mid Feb/15. The next support zone extends to ~171, which is the lower line of that channel. A confirmed break beneath this line would likely lead markets to test the Oct/14 lows, thereby triggering the supposed 10% threshold, and then ultimately realizing your estimates. Bottom line; several rather significant bearish signals need to occur prior to a decline in the magnitude of 20-30%
Doesn't look like it, is it going to be a 20% correction after it goes up 20% from when you mentioned it?
DIA is within resistance territory and could experience a near term decline however the narrow ranged upward sloping channel which began its formation in early February 2015 has not been violated. A break of this relatively tight channel could be the pre-cursor for an official near term correction. RSI divergence seems to indicate that the recent highs lack conviction vs. previous highs e.g. December 2014.
On Friday 2-20-15 the DIA 181.14 close above the 12/26/14 high of 180.71 bodes well for the bulls near term with a likely target of ~183 which is the upper boundary line of an upward sloping channel per the 12/31/13, 12/5/14, 12/26/14 highs. If prices cannot hold the new support zone of ~ 181 then the DIA will likely fall back into a sideways trading range.