Monday 13 October 2014
Does it look like an orderly correction to you?
A lot of talking heads and bloggers have been urging that the market is oversold and advance/decline ratios are indicating dangerous levels for bears etc. Very important supports have been broken on S&P, DJIA and R2K and massive long positions are being squeezed now so even if there is a snap back rally, it would be a great opportunity to go short.
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Hi Bouraq...anonymous here.So far so good on this last quarter selloff.Who knows HOW low it can go? It just started (the correction that is).Unless the Fed or ECB jumps in with QE...no reason to buy in my opinion.Wish I could make my mind up about gold though...not sure if deflation will kill that too.Good luck.
ReplyDeleteHi Anonymous,
ReplyDeleteI reckon this may turn out to be much more than a mere 10% correction but we really need to see one more support to break down on SPX to say that for sure. I'm bullish on gold short to medium term. Long term, it also needs to break up some serious resistances.