Short Term Trading Member Forum

[techcharter]

Nice Chart - Frenchee!

What I notice about the 2002 - 2003 bottom on the stochastics chart is a low followed by a false buy, followed by a retest of the low. In the 2008-2009 timeframe the stochastics have only gone into deeply oversold. The false buy and retest need to happen before a taking a buy and hold position.

From other studies in market psychology, at this time the media is still in a buy to neutral mode. The attitude among the teachers at my friends school is changing so much that nobody is booed for talking about their plans to sell their stocks or re-allocate their 401Ks. This behavior is the "ah-ha!" moment, people leave denial and enter reality.

The masses have not yet sworn never to buy stocks again. This would mark the bottom and be a great contrarian buy signal.