Skip to content

The Last of the Tests

November 24, 2008

”]An immensely interesting study has been conducted at this place. Of particular interest are the last two biggest monthly declines. Hence a proper chart is uploaded and shown for your reference.

The study has partly given encouragement to my theories, but again, a wisened, chastened market observer always understands calling bottom’s is what seperates the rest from the best[the best refrain from calling the bottoms].

But I think my comment on that blog is worth a penny[at least]. The dumb money was nailed by operators, and a rally was taken to trap the panic sellers.

What remains to be seen, is a retest of those levels again, to weed out the last of the dumb money.

Its understandable that the crowd just got impatient while waiting on a two month long[from fag end of July to fag end of September] sluggish sideways trending. Short term crowd gets impatient, long term gets drowsy and mid term crowd gets uncertain. But smart money, understands these are some of the best of the trading times.

Once the faucet  of fear, panic and impatience opens, dumb money is flushed out. And this is what happened. My bet is that once this level is reached and marked by operators as levels which created unprecedented panic, another try should be logically taken to nail the ‘paper’.[Paper is a ‘pit’ term for crowd]

Lets see, where it goes.

But do comment on the link above for its a revealing analysis.


Advertisements
No comments yet

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: