i don't understand why the dow went up yesterday, did the big wallet just assume it was at a bottom and started buying and the rest of the herd just followed the rally? there was no positive news to my record that couldve helped the market do what it did...
THERE U GO
dont look listen to the news
or watch TV
U WILL LOSE BIG TIME
Look at the chart
and try to LISTEN TO THEM
THEY TALK TO THE WISE
DOUBLE BOTTOM IN PLACE WITH SECOND LOWER BOTTOM WITH BULLISH DIVERGENCE.
Think in terms of possibilities.
This is not 1929
And in no way going to have a depression
or even 1972's like recession
It will be like the eighties.
Markets start moving way way way before the news changes.
SO WAKEY WAKEY WAKEY MY FRIEND.
All i am asking u is think in term of possibilities.
I used to lose listening to the news and wondering WTF is happening.
People are going mad and buying.
In answer to your question: "Why did it go up?"
I believe it went up because it's normal to go up now.
since the peak of October 8th 2007 with the DIA at around 140, there have been 4 very specific pull back legs. The first was a pull back of 8.5%. From that bottom, it ran up about 2 weeks to form the next top.
The second pull back leg dropped 16% from that peak. Followed by a retest of that low some 6 weeks later, then climbing up to form a new peak some 7 weeks later.
The third dropped 17% from the previous peak then trended up about 5 weeks to the next peak.
The fourth, most recent drop was 32%. It is about double the size of the previous 3 drops.
2 weeks, seven weeks, five weeks. These are the periods so far that it has taken the market to "digest" the falls and prepare for the next. It has only been about 3 weeks since that bottom, and it has done a bit of a retest.
If an 8.5% drop requires only a 2 week congestion, and 16-17% needs 5-7 weeks, perhaps a 32% drop would require a 12 week congestion.
So for that period of time, I would expect the price to simply hang around in a congestion band or slowly trend up to form the next peak.
Then, watch out below. DIA to 30 in 2 or 3 more legs.
Best of luck, and God bless,
Looks like the Plunge Protection Team may have engineered this rally starting at precisely 2pm.
Many of the charts for the various broad based indexes, i.e. SPY, QQQQ, and ETF's, i.e. XLF, XLU, XLB, appear the same.
That's what me thinks.
It's our "free markets" at work.
Japan announced at 2pm it would consider a rate cut to help stop the Yen from bolting up any more which was screwing up the carry and balance of trades, etc... that news caused a rally and shorts piled in for the end of day drop.... but the buying continued, no pull back so the shorts had to scramble to cover. All B.S. no substance, sucker rally..imho hge
that's what i thought too and the fed are still in meeting for further interest rate cut down to 1% but no conclusion yet I assumed it was all baseless buying but a 10% up was just beyond my comprehension.
thank you very much for clearing that up.