I feel news shifting to fever pitch…that makes me leery of the bearish stance mid-long term.
Posted by MC on Feb 27, 2009
In October we were at nearly a bottom (relatively speaking) IMO. It takes the market time to settle etc… You can’t expect a cruise ship at full speed to turn on a dime. Those moves were over reactions and were absorbed. Notice anything different on the more recent candles? CONTRACTION. Lower, yes…as fearful, NO!
Big wicks on big volume at long term support levels. That’s called market excess and shows strong buying pressure. Who would buy in there? Long term investors and big institutions that flushed at the top and are buying the base all over again. In no way does it guarantee a to the dot bottom but it warns that big boys are leaving their footprint in the sand IMO. Also there’s no way other than looking for a buying climax to tell when they have unloaded these shares.
