Online Stock Trading | Worse one day loss since 9/17/01

Worse one day loss since 9/17/01


Filed Under Market Commentary |

All those blood curdly screams were the bulls running away from Wall Street all day long. China did a number on the pyschy of Wall St. The reasons given for the sell off began with China then backed up by comments made by former Federal Reserve chief Alan Greenspan. Who, just so nicely began the sell off in ‘00 by raising rates. One big difference, irrational behavior on the part of Wall Street traders. The action today is going to spill over into the coming trading sessions. Look for more distribution to hit Wall Street.

China was definitely the main story here. Massive gains have been seen in the Asia/Pacific markets. Reminds me of 1929 and the US stock market. Many newcomers to the market in Asia/Pacific markets were mortgaging their homes to buy stock and getting on margin to boot. This can only spell disaster for the oversees market.

For our markets, what is in store? More than likely we have ended a 4 year Bull market. Best thing to do is to rid yourself of stocks who have broken support levels and those that definitely do not fit CANSLIM method.

The coming correction will definitely remove waste from the market. Most importantly it will set up beautiful charts and gains when we get a confirmed rally. Taking a look back to this confirmed rally, it took a long time for the market to confirm it. Gains seen from July to now wasn’t impressive at all. We’ve had many signs of a market that was ready to correct. We must now prepare ourselves, if you haven’t already done so to position yourself in cash and waiting for the next confirmed rally.

Happy Trading
Market Speculator

marketspeculator@gmail.com

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Comments

4 Responses to “Worse one day loss since 9/17/01”

  1. monocle on February 28th, 2007 8:04 am

    “All those blood curdly screams …”

    That’s very funny. A Pullet Surprise for you.

  2. Market Speculator on February 28th, 2007 8:35 am

    Thank you, but if you heard some chatter there was definitely some squeeling going on!

  3. BHCO on February 28th, 2007 10:39 am

    a solid bear market sounds nice here.

  4. Market Speculator on February 28th, 2007 11:31 am

    It does BHCO.

    Stay in cash…capital preservation for the next bull run.

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