Ever wonder why a correction like is slow and deliberate?
I am not a fundamental guy so help us understand. I can only think that because its controlled by the elite bankers and trading firms to maximize their profit by slowly taking profit at the higher price and create a illusion of oversold to lure retail investor. Or, slow correction because not much selling knowing that the final wave five is yet to come before the bear cycle next year. Any ideas why slow to correct? What happen to those sell off that sells 2 to 3% a day? Well, I can only read foot prints after the fact, and trying to guess the support resistance base on Fibonacci and Elliott wave ( seem like built into traders algorithm.).
"Any ideas why slow to correct?" Marfly the correction is here and has been ongoing. Just because RDS is 'holding' in the $65 range does not mean all is well and good. This stock is really at $55.00 at todays realistic value based on the ongoing inflation and the QE's. You CANNOT buy ANYTHING today for the same dollar value of 2012. Forget for a moment that when a correction occurs that the Dow should go to 13000. Todays Dow at 14.900 is realistically 13000 based on the overall costs of housing, buying houses, renting, buying autos, buying vegetables, buying insurance etc. You ARE in a correction and don't know it only because the numerical symbols don't equate. Everybody is waiting for a 'correction' but we don't realize that we're in it. Went to the supermarket and compared my receipt (apples to apples) and I paid 15% more than last year. Cars are 10-20% more than last year. Housing costs OVERALL are 10-15% higher. There in a nutshell is your correction.
I don't listen to folks in CNBC. People predicting the market does know more than I do. It is the computer trading algorithm that decide when to buy or sell. I just follow the foot prints and anticipate where it might find support or resistance base on the traders belief or built in algorithm on Elliott wave and Fibonacci ratio that they plug in the computer. The fundamental long term investing does not work anymore. You might as well learn their ways and trade like them. Good luck to everyone.
The % of stock above 200 day m/a had drop from 65% to 35% last week. I will start buying when it hit 18 to 20%, as this is the bounce area in the past.