16 April 2008
My view on the market status
this market is neither a bull market nor entering bull market, rather, it is in the process of a vicious bear market since 99% indices' / stocks' MA60 / 125 / 250 are pointing downwards and MA 60 < 125 < 250, which is a typical setup of a bear market.
when will the bull market come back again?
simple, just look at the intermediate- to long-term MAs of most of indices (MA60, 125 and 250), you will know how the market bottoms out.
they must stop dropping and move horizontally one after another, i.e., MA60 stops dropping first and moves horizontally for some time, say, weeks to months, and then moves up slowly. MA125 and MA250 do the same thing one after the other.
the whole point is that MA60/125/250 must stop dropping then we can reasonably expect the bull market is about to start or has already begun.
the strongest stocks will complete the whole painful bottoming process mentioned above well ahead of the rest. they may have even formed bullish arrangements - MA60>MA125>MA250 while others are still crawling on the ground. our focus will be on these stocks. they will give us the biggest profit in the bull market.
now there is simply no point to play against the powerful bear unless we are shorting using CFDs which is highly costly.
this market is neither a bull market nor entering bull market, rather, it is in the process of a vicious bear market since 99% indices' / stocks' MA60 / 125 / 250 are pointing downwards and MA 60 < 125 < 250, which is a typical setup of a bear market.
when will the bull market come back again?
simple, just look at the intermediate- to long-term MAs of most of indices (MA60, 125 and 250), you will know how the market bottoms out.
they must stop dropping and move horizontally one after another, i.e., MA60 stops dropping first and moves horizontally for some time, say, weeks to months, and then moves up slowly. MA125 and MA250 do the same thing one after the other.
the whole point is that MA60/125/250 must stop dropping then we can reasonably expect the bull market is about to start or has already begun.
the strongest stocks will complete the whole painful bottoming process mentioned above well ahead of the rest. they may have even formed bullish arrangements - MA60>MA125>MA250 while others are still crawling on the ground. our focus will be on these stocks. they will give us the biggest profit in the bull market.
now there is simply no point to play against the powerful bear unless we are shorting using CFDs which is highly costly.
Labels: Stock Trading System
