DOW: Set up for a big sell-off (massive profit taking)?

grubs50

Well-known member
408 0
DOW: Set up 4 a big sell-off (massive profit taking)?

As a Novice in this business, i just want to know the opinion of other ppl with regards to the current trend of the DOW. It seems to be way 2 high and seems that the big boys(institutions) r taking advantage of d low volumes and setting it up 4 a big sell-off to make massive profits. Am i being naive? Is the US economy recovering so fast to justify the high price of the DOW?
 

lockstock

Well-known member
400 4
Inclined to agree,


posted a while ago top for INDU would be circa 9,450.

Just a waiting game now :D



Ls
 

grubs50

Well-known member
408 0
I'll be absolutely shocked if it goes that high in d short-term i.e within the next 2 weeks
 

genti

Active member
152 0
grubs50+10.

you shouldn't really be surprise, if you short might be worth it looking to hedge your positions.
 

2468steve

Experienced member
1,076 39
grubs,
To be honest i'm totally shocked we're even this high today.Can't see the justification for it myself.
Cheers
 

oatman

Senior member
2,879 22
I was convinced we were in for a sell off thru 9400. Sat looking at sideways all bloody evening. What a bore
 

JE2000

Active member
141 0
If we get a 500 (or greater) point movement in one week i.e. back in march when the dax, cac and ftse100 make new lows before starting the new uptrend. Will this be a signal of a top. Something similar happen during late may and early June and the markets have traded sideways ever since.
 

fudgestain

Well-known member
254 9
I can never quite understand why a market level should shock or alarm anyone at anytime. The market is at that price because thats the market price, period. Is the Dow high? Not if the alternative is keeping cash when the USA base rate or key Fed rate is 1%. But take your choice from other rationales, if that one doesn't suit you.

Its rather like those 'bears' that lurk about on financial BB's .. its like (or is) a permanent personality disorder: they are bears when its a bear market, bears predicting a bear market when we've only just got over the last one, bears when its a new bull market, bears when they are being bulldozed over by a growing bull market, bears during a long lasting bull market and bears (if they are still alive) when eventually another bear stock market arrives after years (or even a decade or 2) of waiting! Life on the planet Earth .. what can I say!
 

2468steve

Experienced member
1,076 39
fudgestain,
I'm surprised we're at this level because i really can't see what's changed in the US to be greeted with such euphoria.We're not too far away from the level where the bear market started.
You answered it yourself by saying what else is there to invest in to get a return.
I'll trade the market whichever way it goes,but if i was investing instead i wouldn't want my pension fund buying US stocks

cheers
 

grubs50

Well-known member
408 0
Thx steve, that was exactly my point, what is d justification 4 it being at dat obviously (IMO) unrealistic price. Nobody is saying the Price can't be at any level!!
 

lockstock

Well-known member
400 4
Morning Grubbs,

Primarily extrapolating the bear resistance line from the 11th May
2001, catching the high & reversal, 13th march 2002 & then on to today c. 9450.


On the bigger picture looks like a right shoulder forming at present of a H&S pattern- possible long term target of c.6800 imho




Cheers Ls
 

lockstock

Well-known member
400 4
Do have an open mind on this, if you look at the chart below- action just coming upto the indexia 1000 ma, also illustrates the RH shoulder etc, if it does bust thru' this area next major resistance looks to be c.9900
 

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BramleyMan

Junior member
11 0
Bull or bear..we haven't taken highs out of June 17th yet...so technically can call it whatever fits you and your style, all I know from my experience is if you allow yourself to THINK into a state of over or under value....the market will get you.....and as we all know it takes no prisoners....my style and indicators etc prefere to short, but getting used to going long sometimes.....