Another reversal sign with light volume

7/3/08

With only half trading day as of thursday, the volume is relatively less. Major indexes were formed another Doji star/hammer reversal candlestick signal. However, the VIX as well as puts/calls ratios were not in washout fear zone yet. Has the market bottomed? I think this week the market would give us a much clear answer since all traders/investors are back from vacation. Remember folks, we are in a bear market, and it is very dangerous to try to take positions anticipating the next rally only on the fact that the market is very oversold, triple bottom on S&P weekly charts and sentiment is lot of bearishness. SO, we need to see more signs to confirm this intermediate bottom reversal( one of example is crude oil future break down the trendline $135 and support $130). Here, I want to share how normal people would lose grip by believing so called economists, mutual funds managers, and stock analysts. The CNBC was publicly showing a survey back on May that over 70% mutual funds managers are bullish about US 2nd half economy would recover. Also, at the same time, most economists are confident that Fed rate cut with Bush stimulus package check would help US avert into recession. Oh, why now so called Wall Street professionals are turning more bearish because CNBC has been constantly reminding us of ALL MAJOR INDEXES are now DOWN more than 20% from their October highs?? But why as Technical Traders/Analysts and myself could notice this was a BEAR MARKET back to last December ( 6 months ahead of general public known what the hell is US stock market and economy going on? ) I am not to be proud of rising my bet or being superior. I am here to say that who's most care about your hard earn money? ( yourself, your own). I am not saying the stock brokers, mutual funds managers or financial professionals not good enough. I want to point out that you should put down some time to educate yourself about how to read charts, study basic technical stuffs to help pick your own winning investments vehicles. Get better timing about your own sense rather depend on most unreliable financial resources. I have chatted too much here today. Before I stop, I have found out interesting stuffs to predict the Dow movement one week ahead with chinese fengshi analytic ( cannot tell you the source). Monday, go down then close in green. Tuesday, down day. Wed, little up. Thur, another down. Friday, unclear, mostly little down. It did not tell the exact points but it does give indicate the direction of the day. Believe it or not that depend on you. Just a sharing only. Not recommand a trading signal.