Monday, July 5, 2010
We learned because a stock looks cheap, does not mean it has made a significant bottom.
We know from this case that the market is sold down, but yet can be sold down further, with only a "relief rally" here to take off the pressure and let it settle back down to some serious selling.
Note that the blue bars can run a long way down yet, and are aimed that way, so maybe we will get another day or two down before the "RELIEF RALLY" takes the pressure off . There are literally hundreds of methods to look at this, but simple as this is, it seems to say that low as the market may seem to be, it may notch a little lower before re-adjusting.
Please note we will be holding a chat here Sunday NITE 7-9 PM Eastern, Open format everyone welcome.