Market comments for Oct. 12th, 2011, Columbus day
Say what you like about this rally, it has surprised everyone, including me. I had to look at the chart this morning to see just how high it has climbed back up from the bottom and to see whether I think it will hold. The chart below shows it was a rise of about 8% in 7 trading days. However, when I look at the very low and dropping volume, I am very suspicious of this rally and it appears to me to be a another bear trap. Here's the chart. You decide!
Labels: bear trap, chart, Columbus day, Dow, rally, stock market, Volume
posted by Charles Amico at 8:18 AM
4 Comments:
With the very grim status of our economy. This market has no right to be where it presently is.
What will probably happen is: this market will continue to rise and sell off until the economy is on solid ground. Then we will probably drop to the lows of where we should be now.
I presently continue to hold TZA. Have been for multiple years now. Endured a reverse split which did not help matters as I still wait for the market to drop to a level where I can at least breakeven.
Never mind making a profit. I look back now and question why I made this move, which has so far proven to be a big mistake! very big mistake!
I hear ya, loud and clearly. The idea of holding TZA and not trading it is not what the ETF is for. We are supposed to use it as a daily or a weekly trade. For example, it has been as low as $39 and moved to $64. This should have been traded and sold and take that profit and wait to buy it back cheaper. When the market reacts counter to what is believed to be the correct direction based upon the economy and other facts that tell us this country is in trouble, we all hang on in fear of just selling the damn thing in the first place. Then we sit with a larger loss hoping for the "big move" up. Well I got suckered into the same place and it was a big mistake for me as well. I'm sorry for both of us and any others in the smae boat. But I am trying to trade it now. I buy new shares at these lows and hope to make a nice profit in them and when I do I sell them and wait again for a pullback. Then I buy again.
ps. It's hard to beat manipulation of the markets by the Fed and that's what has happened to many of us.
What has actually happened is: I went against my all time belief of buying and holding reputable companies thru thick and thin
TO:
hearing that the market is ready to fall off the cliff and that I had better bet against it or I will be losing it all!
If I had kept those reputable companies stock, I would be up quite nicely at this point in time.
Live and learn, the hard way
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