Will we hit May's low again?

[Rolo]

Choose wisely. :D

[tsptalk]

The Nasdaq did already. The Dow and S&P have a nice clean "W" pattern going. I'd really hate to see the breakdown. I'm hoping today was a bit of a capitulation.

Crazy days indeed. Yesterday we open up strong and sell off. Today we open weakly and close strongly.

Place yer bets.

[Mike]

I don't think we'll see the funds hit new lows. The C and S funds are definitely within sight of them, though.

[Rolo]

So what is the plan for if they do hit new lows? Do we hold on, or do we bail until a reversal is confirmed?

[smine]

Wonder how 100% F did after yesterday, PR?

[tsptalk]

Rolo wrote:
So what is the plan for if they do hit new lows? Do we hold on, or do we bail until a reversal is confirmed?
In May the March lows were penetrated by about 10 points on the S&P 500 before we had a big rally. So far yesterday's low are holding, but even if we do drop below 1075, it will be a panic sell off and it should quickly rebound, perhaps even the same day as we saw yesterday. (Did you expect me to say anything different?) :D

[Rolo]

tsptalk wrote:
...it should quickly rebound, perhaps even the same day as we saw yesterday. (Did you expect me to say anything different?) :D
LOL!

Good point about the panic sell-off; I am familiar with that ubiquitous chart pattern. It sounds like it may be a good opportunity for a quick short-selling. (I am not ready for that yet, but Frizz may be!)

On that note, I did my first short-sell of TASR during the panic of safety concerns for a lovely two-day profit...whoo hoo! If I had to dump my long position in it, I figured selling short was the obvious thing to do.

[tsptalk]

Another nice day so far but there is a lot of overhead resistance just above. The sentiment numbers came in nice and pessimistically (36% bearish), the lows have held so far, the S&P is back over 1100 and the 200 day moving average, good earnings keep rolling in. So far so good. Cross your fingers.

[Rolo]

tsptalk wrote:
Another nice day so far but there is a lot of overhead resistance just above.
I think I am noticing that with some stocks that have broken out. I keep trying to decide if they will pull back a little or stay horizontal to digest the recent gain, or will they just keep going. I am thinking flags and pennants, last chance to buy over the next few days before things run upward.

What would besome good indicators that, indeed, a stock will run up rather than start another base/correction to mitigate risk?

(Boy I need to not skip the daily dose of IBD!)

[tsptalk]

Rolo wrote:
What would besome good indicators that, indeed, a stock will run up rather than start another base/correction to mitigate risk?

I haven't looked at individual stocks in a while but I'd say volume is important. Did volume dry up near the bottom and pick up during a rebound? If it's an oscillating chart (non trending) look at the overbought/oversold type indicators (ie; stochastics).