The first Tuesday for the market to fall, after a 22 streak of ups, If you take out the Tuesdays the market was barely up for the year.
Asia is now in free-fall.
Although we have all the reasons to go up, we are governed by a market which is leveraged by margin, like never before as interest rates begin to rise, margin begins to slim, when margin goes out the window, only real cash is left & it is a fraction of the market.
I fear that 24.00 may have been our peak for this round, but really who knows?
The S & P and Dow are at their moving averages 50 day. SNTS is close to 50 DMA, and has seen it before. Pull the 2 year charts for Dow and S&P and do basic tech analysis. They have touched this average several times in the last year and continued on the same trend. I don't think interest rates will be rising immediately and the QE may continue. Which should be bullish for equities. What does everybody think?
Sentiment: Strong Buy
I think someone made a statement to one of my comments a few weeks back that I feel is the case here. Its a secular bull market taking place. You will have these tear down periodically before we move even higher. I personally think QE is done, but interest rates will stay low for the foreseeable future (net positive for stocks). SNTS will ultimately benefit from this...I still say this is a $60 by Dec 31, 2013 (this year)! We will take our 2-3 steps forward to take one back occasionally as healthy markets do, but the trend is up and SNTS will bounce and bounce big when the time comes!
Sentiment: Strong Buy
I am basing my prediction on a number of things, which happened in March 2008 (or was it 2007), The Japan Market is in bear territory, the USD has had a rapid decline against the GBP & Euro, & precious metals are being smashed down on purpose. Copper is low & oil is high.
These are all the ingredients of a massive sell-off. All of us know that markets work for the insiders who helped write the rules & laws, with wide open insider trading loopholes, but they seem to use the same tricks to screw the retail customer, over & over.
If you will notice SNTS doesn't move like a regular stock it makes massive swings up, down & sideways, so even if the DOW dips 0.5% we could dip 4.00% or more.
It is not that I don't think we are a solid company with good fundamentals growing in leaps & bounds, but the market is linked, and many buy on margin, as the market & price drops so does the margin which squeezes out retail & hedge funds, with no body to replace them causing a drastic decline.
For Now I am here to stay I wish I would have sold at $24.00 & bought back under 20.00, but then I may regret that too. So for now I am staying put.
Do you suggest then constantly increasing institutional ownership is on a margin? Hmm..... Out of 35$ non-institutional probably 10% is on a margin, max 15. That means probably 2-3 days more and the margins are washed out. No?