Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
The Connection Between Stocks and the Economy is not What Most Investors Think - 19th Sep 20
A Virus So Deadly, The Government Has to Test You to See If You Have It - 19th Sep 20
Will Lagarde and Mnuchin Push Gold Higher? - 19th Sep 20
RTX 3080 Mania, Ebay Scalpers Crazy Prices £62,000 Trollers Insane Bids for a £649 GPU! - 19th Sep 20
A Greater Economic Depression For The 21st Century - 19th Sep 20
The United Floor in Stocks - 19th Sep 20
Mobile Gaming Market Trends And The Expected Future Developments - 19th Sep 20
The S&P 500 appears ready to correct, and that is a good thing - 18th Sep 20
It’s Go Time for Gold Price! Next Stop $2,250 - 18th Sep 20
Forget AMD RDNA2 and Buy Nvidia RTX 3080 FE GPU's NOW Before Price - 18th Sep 20
Best Back to School / University Black Face Masks Quick and Easy from Amazon - 18th Sep 20
3 Types of Loans to Buy an Existing Business - 18th Sep 20
How to tell Budgie Gender, Male or Female Sex for Young and Mature Parakeets - 18th Sep 20
Fasten Your Seatbelts Stock Market Make Or Break – Big Trends Ahead - 17th Sep 20
Peak Financialism And Post-Capitalist Economics - 17th Sep 20
Challenges of Working from Home - 17th Sep 20
Sheffield Heading for Coronavirus Lockdown as Covid Deaths Pass 432 - 17th Sep 20
What Does this Valuable Gold Miners Indicator Say Now? - 16th Sep 20
President Trump and Crimes Against Humanity - 16th Sep 20
Slow Economic Recovery from CoronaVirus Unlikely to Impede Strong Demand for Metals - 16th Sep 20
Why the Knives Are Out for Trump’s Fed Critic Judy Shelton - 16th Sep 20
Operation Moonshot: Get Ready for Millions of New COVAIDS Positives in the UK! - 16th Sep 20
Stock Market Approaching Correction Objective - 15th Sep 20
Look at This Big Reminder of Dot.com Stock Market Mania - 15th Sep 20
Three Key Principles for Successful Disruption Investors - 15th Sep 20
Billionaire Hedge Fund Manager Warns of 10% Inflation - 15th Sep 20
Gold Price Reaches $2,000 Amid Dollar Depreciation - 15th Sep 20
GLD, IAU Big Gold ETF Buying MIA - 14th Sep 20
Why Bill Gates Is Betting Millions on Synthetic Biology - 14th Sep 20
Stock Market SPY Expectations For The Rest Of September - 14th Sep 20
Gold Price Gann Angle Update - 14th Sep 20
Stock Market Recovery from the Sharp Correction Goes On - 14th Sep 20
Is this the End of Capitalism? - 13th Sep 20
The Silver Big Prize - 13th Sep 20
U.S. Shares Plunged. Is Gold Next? - 13th Sep 20
Why Are 7,500 Oil Barrels Floating on this London Lake? - 13th Sep 20
Sheffield 432 Covid-19 Deaths, Last City Centre Shop Before Next Lockdown - 13th Sep 20
Biden or Trump Will Keep The Money Spigots Open - 13th Sep 20
Gold And Silver Up, Down, Sideways, Up - 13th Sep 20
Does the Stock Market Really "See" the Future? - 12th Sept 20
Basel III and Gold, Silver and Platinum - 12th Sept 20
Tech Stocks FANG Index Nearing Critical Support – Could Breakout At Any Moment - 12th Sept 20
The Tech Stocks Quantum AI EXPLOSION is Coming! - 12th Sept 20
AMD Zen 3 Ryzen 4000 Questions Answered on Cores, Prices, Benchmarks and Threadripper Launch - 12th Sept 20
The Inflation Mega-trend is Going Hyper! - 11th Sep 20
Gold / Silver Ratio: Slowly I Toined… - 11th Sep 20
Stock Market Correction or Reversal? The Jury Isn't Out! - 11th Sep 20
Crude Oil – The Bearish Outlook Remains - 11th Sep 20
Crude Oil Breaks Lower – Sparking Fears Of Another Sub $30 Price Collapse - 11th Sep 20
Inflation by Fiat - 10th Sep 20
Unemployment Rate Drops. Will It Drag Gold Down? - 10th Sep 20
How Does The Global Economy Recover After This Global Pandemic? - 10th Sep 20
The Best Mobile Casino - 10th Sep 20
QE4EVER! - 9th Sep 20
AMD Ryzen Zen 3 4800x 10 Core 5ghz CPU, Cinebench Benchmark Scores (Est.) - 9th Sep 20
Stock Traders’ Dreams Come True – Big Technical Price Swings Pending on SP500 - 9th Sep 20
Should You Be Concerned About The Stock Market Big Downside Rotation? - 9th Sep 20
Options Traders Keep "Opting" for Even Higher Stock Market Prices - 8th Sep 20
Gold Stocks in Correction Mode - 8th Sep 20
The law of long-term time preference and Gold ownership - 8th Sep 20
Gold Bull Markets: History and Prospects Ahead - 8th Sep 20
Sheffield City Centre Coronavirus Shopping Opera Ahead of Second Covid-19 Peak - 8th Sep 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

The Once in a Lifetime Stocks Bear Market

Stock-Markets / Stocks Bear Market Oct 11, 2008 - 04:07 PM GMT

By: Weekly_Wizards

Stock-Markets Diamond Rated - Best Financial Markets Analysis ArticleWhy wasn't that a perfect reversal Jack? Because the advance decline line wasn't right. Slightly more losers than gainers on the Nas but 2/1 negative on the Nyse. You want 2/1 or 3/1 advancers to decliners. I know today seemed exciting with such a massive reversal but many stocks lagged badly and some were absolutely crushed. You won't see that when we make just the right reversal. The rally occurred for two reasons. Incredibly oversold and massive short covering ahead of the G7 meeting this weekend which will be a meeting to try and find more solutions for the current credit crisis. The shorts are afraid of them coming up with a solution that the market will like.


They figure, hey, I've made a lot of money being short, I can take profits here ahead of the big meeting. If nothing comes out of the meeting, nothing substantial that is, then the market will likely fall right back down early next week. They'll likely take more short positions and more folks will sell their stocks. Just because we got a nice rebound today does not mean the selling is over. I want all the right ingredients before entering back in again. I've learned over time that the market really doesn't change very much. It pretty much does what it's supposed to and that means all the right ingredients will be in place the day the market really bottoms for some time. It'll allow for one gorgeous counter trend rally that we can all enjoy but I feel today did not bring all the necessary ingredients together, sad as that may be. Close, but no cigar.

It's important to understand the depth of this bear market and why it already is different this time. We've had days of over 3000 new lows. We've had a record number of days on the Vix at levels never seen before in history. It's still very high. We've had a record level of losses in a very short period of time in terms of price. We have the worst bull bear percentage in terms of pessimism in history. We basically printed the highest level of the put call ratio you'll ever see. The list goes on and on and is seemingly endless. In other words, with all of these realities upon us daily, the market still can't rally.

It should already have long ago bottomed and a new bull begun but in this case, IT IS DIFFERENT THIS TIME!!! No matter what happens from here, it was different this time. There will always be something different in a persons lifetime that happens only once. You will never see anything like this again in your lifetimes but we are living it in the moment and we're all trying to figure out how to play it appropriately. There is also an anxiousness about getting in at the very bottom. We all want to do that. It's virtually impossible because we want to see a rally first that tells us we can nail this thing. This bear market is so bad and so different we have to be super sure before we get in. Even then there's no guarantee but you have to enter when all the signals come together and we will.

I think the roughest part of this bear has been the screaming shills on Cnbc and other financial stations but particularly Cnbc. They march out one money manager after another who has been just crushed and they have been telling you for the past 3000 points that it's fine to enter in the markets. That we have never seen a better buying opportunity. These shills have dragged in many that i know of and now they've gotten hurt for no good reason. These folks know how to sell themselves and can make some very strong cases for why we should all be listening to them. They don't really care about any of you but they'll do anything to get your dollars in to the market to help their cause.

I think, over the past month, that Cnbc has asked at least 100 of these people "has the bottom been seen"? "is it time to go back in"? I mean, how many times can you ask the same stupid question to everyone on your show? Only a few of them have said they weren't sure. If you hear it enough times and you're looking for some guidance, it's easy to follow their advice. After all, they are the experts, right? Yeah right!!!! I hope the majority of you have not been adversely affected by the inappropriate behavior of that station and others. Shameless!!!

There are no rules that say the bottom has to come the way I believe it will. With all the ingredients I have spoken about recently. It may have come today in a way I would never expect. That we have never seen before. This is a once in a lifetime bear and maybe it ends in a once in a lifetime way. I wouldn't bet too much on that. It really would be best to play this game in a way, based on the nastiness of this market, that says the waters can be tested. So what if we miss a little bit first in terms of up side. This bear is one mean beast. It has my full respect. I'm sure it has yours as well. Let's go about our business the right way.

Don't let today bother you. The Dow was up 300 with thirty minutes to go and then reversed down over 400. Also not what you'd see at a real bottom. Maybe we've seen the ultimate lows but that doesn't mean we won't get another strong test down that sets things up the way we'd all prefer.

Peace

Jack

Sign up for a free 30-day trial to Jack Steiman's SwingTradeOnline.

http://www.advicetrade.com/Wizards

© 2002-2008 MPTrader.com, Weekly Wizards an AdviceTrade publication.  All rights reserved. Any publication, distribution, retransmission or reproduction of information or data contained on this Web site without written consent from MPTrader is prohibited. See our disclaimer.

Weekly Wizards Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules