Having been posting on many forums and serving as a moderator on two forums for a long time, I am going to focus more on my own blog from now on. I appreciate those who follow my posts. If you have any question, please feel free to post/comment (or PM me) so that we can discuss.
One of the questions that lots of people asked recently was when the current bear movement could end. I would like to tell you (but you might not be happy to hear) that this bear market is far from over, as I mentioned many times in My Trade section.
There are many types of bear market formations. Some are of short term corrective waves, but some are of long term bear markets. We have seen 1987 big crash, flash crash (fat finger), and long term bears (2000 and 2008). Let me tell you my friends, the most dangerous bear market formation is a long winding slow motion one! The money flows outward from equity (slowly) into some other markets (e.g., bonds). Every time the stock market falls to a support (temporarily), it attracts some little bulls to buy, and the market gets rebound, but the market falls below the support area few days after and traps more people.
In conclusion, DO NOT buy into any dip! Any surge is your opportunity to unload your stock and go short. The bear market has just started and is far from over.
Thank you very much for sharing your market views with us.
ReplyDeleteToday $TRIN data is very bullish, almost luring me to buy SPY 133C/AAPL 540C. However, after some observation on AAPL price-action, I I gave up buying call and focusing on put instead.
Actually SPY has finally developed a strong trend down day.
It seems $NYAD is a better indicator than $TRIN.
Thanks again for your work.
Peter
Hi Peter - Thanks for enjoying reading my blog. I guess that we have talked before on some forum?! I am glad that you join our discussion. That means a lot to me because I won't feel like I am talking to myself. If you by chance see some articles here in some language other than english, please utilize Google Translate to get the translation. I will be more than happy to explain if the translation does not make sense to you. Again, thanks for reading my posts.
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