Morning Jim
i am back form holiday in St Martin it was simply spectacular.
As for the markets? We have had 5-6 "major breakouts" over the last 7-8 months to all time highs on several indexs with very nice stair step charts to show us the way.
the overbought conditions along with the "trigger" Alan Greenspan's remarks last week in Asia started the much needed correction. For my money this is nothing more then a normal reaction to an extreme that had to correct.
we've seen this type of wild action many times before. but for all intents and purposes this is yet another great buying opportunity once it settles out.
crude is down and stable at $60.00, interest rates are testing the lower end of the channel and could go a lot lower.
the FED is pumping money into the markets to keep things Goldilocks for us traders.
with the exception of housing & autos things look ok to me.
the fear factor that emerges during times like this also brings out the bears en force, and some posters we have not heard from for months on end...they missed the latest rally and are now here to tell us "i told you so"...they knew nothing then and less right now.
forget all of them and just keep calling it like you see it and so will i.
the best thing that could have happened to all of us scalpers is we were flat each night, in cash and sleeping like babies..
now is the time over the next few weeks or so to begin to make up a shopping list for fire sale prices on selcted solid names..many traders got stopped out of long term holdings everyone should get that cash ready for the exact same scenario as i wrote about 2 weeks ahgo.
we'll yet another outside bullish reversal day that will signal the bottom areas just like it did the top.
everyone forget all the noise, relax and stop talking about fear...that is nothing but noise and your wild imaginations.
this is exactly what the ebbs and flows of the markets look like each and every year. the difference is the speed at which things unfold. if you do not know when to buy, then leg in to postions 1/2 at a time.
stand back relax and be ready to buy this wonderful dip one more time...
