Which way now?

[darth trader]

Well the last 5 trading days have been hair raising and gut wrenching. All the technical indicators were saying that the market should turn up but it has stubbornly refused to do so.

Now that Alan Greenspan has given his speech and the US Markets have tested their lows again I feel that the market is like a spring which has been pulled down so far that it is ready to explode upwards for the next 5-10 days at least.

Of course there are sectors that will decline but the one's I'm primarily interested in (TMT's) have their moving averages and signal lines crossing up.

I wonder how many bulls and how many bears there are out there just at the moment?

 

[Uncle]

Agree with you Darth so far as TA is concerned, but have concluded trying to pick six winners together is like trying to win the lottery..........well the profits would be tax free if your lucky enough!!!

John

 

[titus-uk]

I think that in the medium term, we have to be bearish - there are too many indicators pointing to a downtrend.

However, every downtrend has retracements, bounces to make money if going long. So, whilst there may be lower highs, I think that it is fair to expect a short term rally in the very near future. As usual, TMT's that have been savagely punished are the most likely to post rises of 30-40% - before the downtrend resumes!
Interested in other opinions!

Mark

 

[darth trader]

Thanks for your thoughts.
I too think that we have not yet hit the bottom but think that we will get that 10-40% rise in the stronger TMT's.

In particular I notice that Logica showed a Morning Star candle pattern earlier this week.