When the [tag]stock market[/tag] started rocketing last Monday, I was very suspicious about it. I truly wished the [tag]market[/tag] would turn already, finish its bottoming and start moving up, even slowly, carefully, but with confidence. Then I have realized that all this move is based on a fake power. The news that the Government is going to bail-out CitiGroup by pouring 20-something billions of inflationary [tag]dollars[/tag] into another [tag]company[/tag], which doesn’t deserve it at all, Obama’s picks of people in his future administration and some others, are just promises and wishful thoughts, which won’t do anything good to the market in a long run. I would like to be wrong however. The truth is that the stock market is [tag]oversold[/tag] and it needs some impulse to boost its growth. Maybe these “news” will help it grow. We may see what would happen in the stock market next week. All the rise could be a pre-holiday rush, which will fade next week.
|
[tag]Dow[/tag]
|
+247.14 | +2.91% | 8,726.61 |
|
[tag]Nasdaq[/tag]
|
+67.37 | +4.60% | 1,532.10 |
|
[tag]S&P[/tag]
|
+30.29 | +3.53% | 887.68 |
However when you take a look at the chart we can see a turnover, which was missing last time. The OVB indicator turned sharply up and the Dow index raised 4th day in a row. However the only negative point is declining low volume.
I am changing the market status to “Rally Attempt” even though the low volume and the sources of this attempt are weak and may cause another failure next week.
Tip: There is still nothing to do than waiting. This attempt may fail as a few attempts ago. Use this time for studying the market and stocks, save money, do not open any new positions, create [tag]emergency account[/tag] if you still do not have it, build a [tag]watch list[/tag] and wait for the market to tell you when it is the best time to start [tag]buying stocks[/tag] again.
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What do you think about today’s market? Do you think we are at the bottom? Is it time to start investing right now or wait more? I am interested in your ideas and thoughts. Share them! Thank you!