Searching For Clues to This Crazy Market?
Its always interesting to watch the analysts and the reporters search for fundamental reasons for a pull back in the markets. Everything from the Greek bailout, Goldman Sachs charges, failed Terrorist attacks to valuation of the markets. They do a very impressive job of finding reasons. This last week of trading has been schizophrenic to say the least. Take the Dow Jones Industrial Average for the last week. Last Tuesday it was down 220 points, Wednesday and Thursday combined up 180, back down 163 on Friday, up 146 on Monday, and finally down 220 today. Sure there is a fundamental answer to this craziness…. and you’lle buy “this watch” (pointing to empty wrist) for a dollar
Whatever the reasons, fundamental or technical, the real trick here is trying to find the right spot to get back in your long trades. Of course this depends on whether or not this really is a correction and also that you’ve already sold your positions. In today’s market, if you manage your own investment portfolio or consider yourself a trader, you really need to pay attention to what technical analysts refer to as levels. Technicians like to use tools such as Fibonacci Retracements, previous support levels, percentages, trend lines, etc to determine when a market will stop selling. Of course the way this thing is going we could be right back up 180 tomorrow and we’ll be talking about a bull market all over again…
