Traders Laboratory - View Single Post - Do You Think Market Is Making A Ceiling?
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Old 04-22-2007, 04:19 PM
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Re: Do You Think Market Is Making A Ceiling?

Here's a follow up chart to my post there:



The first red box was the big drop day on the dow (Feb 27th). As you can see, even after a big bear day, the Dow did not really plummet and head into a bear market as many predicted. It came down a little more and after we all realized the market was not going to the dumps, back up it came.

I have to wonder what the fascination is with trying to pick the top. Look how many possible tops appear on that chart. I realize no one here would of tried to call those tops either, but someone, some where did.

If anything, I would be a permabull if I had to choose. And outside of my trading accounts, I do. If you have time, the market has ALWAYS gone up. It may not be immediate, but if you can buy when you see great opportunities at -500 days, you are rewarded sooner or later. At the close of business on Feb 27th, the DJI was at 12,216. We are now wondering when 13,000 will be passed. That's approx 800 pts in 2 months or so...

I realize this is not a long-term investor forum, but the point being that over time the market has always headed higher. Sometimes it takes years and sometimes it can gain 800 pts in 2 months... I do not use this information in my day-to-day trading as I am just trying to capture small moves and exit. But, for your retirement funds, children's funds, etc. going long the DIA on Feb 27th looks like a pretty smart investment!

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