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IBDvalueinvestin (99.66)

Everything Breaking down

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October 21, 2010 – Comments (5)

There is a massive shift going on right now and I am afraid its the shorts getting the upperhand. If DJIA 11k falls within the next week or so it would be a major signal to abandon ship and go the other way.

 

In the past Octobers of 2008, 2009 when Chinese stocks started crashing it was a signal that the overall market was going to go into a short-term tailspin. It happened both times, Last week in October and the period  between Nov. to Dec. was a tailspin.

5 Comments – Post Your Own

#1) On October 21, 2010 at 12:59 PM, davejh23 (< 20) wrote:

Agreed.  Dollar charts look bullish...bearish for stocks.  Small caps look to have topped.  SPY is close to signaling a definitive turn lower.  VIX looks to have bottomed, signaling a top for stocks.  It would take a major positive news event for stocks to continue their climb much further. 

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#2) On October 21, 2010 at 1:21 PM, leohaas (32.11) wrote:

Huh? Did I miss something? When you wrote this the DOW was at about 11,150, still up. Why is 11k so critical? Are we not heading for a Republican-led Congress with a Democratic President, historically the best for the market. Did we not just start the fourth quarter of the second year of a Presidency, historically the start of a significant rally?

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#3) On October 21, 2010 at 1:42 PM, davejh23 (< 20) wrote:

When you're in the middle of a depression, I think past trends go out the window.  In any case, I'm talking about a short-term top...a correction, not a crash.

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#4) On October 21, 2010 at 1:47 PM, mtf00l (44.95) wrote:

Interesting...

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#5) On October 21, 2010 at 2:13 PM, IBDvalueinvestin (99.66) wrote:

I have a feeling that no matter what number of wins the Republicans get it will be considered sell on the news, The Rally since August 30th lows has been almost on par with some of the greatest runs of Sept-Oct in the history of the market.

That being said, I will be a fool to pour more money in the market in November except for a select few stocks that have stock particular bullish news. One such stock is GTE with its Oct. 8th news, stock should be in an uptrend for a while with this news:

Gran Tierra Energy Announces Initial Moqueta-3 Results; More Than Doubles Potential Net Oil Pay

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