My good friend David Galardi says in his comment on the last blog that short-term Type 1 and 2 traders are suffering from too many anti-acids and bland foods these days, but the Types 3 and 4 are relaxing on the ski slopes and sitting in their fox-holes.
- Back down to test 2203 on the Nasdaq to form a double bottom and then maybe another attempt at a rally.
- The Bears win the fight at the OK Corral #3 and we head down below 2203 to my next target at -30% on the Nasdaq of 2010.
- An immediate turn-up today or early this week based on more rumors and/or real news that suggests yet again that all is well. It wasn’t too encouraging today, but they brought the market back at the end so they may be able to rally it for a few days. This beast is like a lump of jelly these days and I need say no more.
Different Stomachs enjoy different times:
- a. Very short-term players equally adept as you on playing the market both ways. They know their trump card is “Nimble” as you know too well, have the stomach to play the reward/risk throw of the dice, and are making good money on both sides of the market. They are the Type 1 & 2 traders who are now becoming even more adept in trading in moments, not hours or intra-day.
- b. Those who have already preserved their Capital and are sitting on the sidelines waiting patiently until we see better signs that the market has truly bottomed. They accept the tongue in cheek scenario of using the Thick Blue Pencil Technique I use on a few previous notes to cut through to what the market is telling us now. They are the Type 3 & 4 Investors who usually cannot or do not wish to get their hands burnt one more time on a hot stove, as one of our supporters tells me, and prefer to ski and sharpen their thinking for when the coast is clear.
- c. Those who are refining their T/A techniques and are finding new avenues to challenge them and use the Yahoo HGSI bb as a great sounding board to determine whether their Gann, EW, Reif, etc can be sharpened further on what has to be a challenging Volatile situation that most will admit have not seen before now and has become the norm. It’s a friendly place to try out their skills, but heaven help them if their forecasts are not within acceptable tolerance levels, despite the last two moves by the herd, one up and one down based on nothing other than rumor. Amazing that these days a hard earned week’s profits are killed in an hour based on faulty rumor. But that’s the nature of the beast and the times we live in.
Only less than one month to the Seminar on March 29 to 31, so hurry up and sign up for the last few seats still available.