We're seeing lackluster perormance on the IWM(the i-shares Russell 2000 ETF, which tracks the US mid-cap stocks). The Mid-Caps have been a major force behind the surging market gains in recent years and we're seeing some support, albeit weak.
I'm not gonna trade untill I get some strong confirmation that we are indeed moving up (both in IWM and S&P 500)
1400 is the mst important level right now for S&P 500 and 12750 for the Dow (which has been the most important level for months now) If we look at SPY (the ETF that traks the S&P 500), we see decreasing volume since market highs in july 2007 and again in october 2007. Decreasing volume with lows signifies that the sellers are running out of inventory to sell. I think that the probability of a bounce back is higher this week and the one after but not necessarily a solid one.
Emini is a seasoned trader. For the rest of us, we need to stay calm and only start buying when we see a solid trend at hand. The trend is your friend.
And Aman, you really shouldn't have bought Intel. I'd get out of it. Never put more than 5% of your money into one stock. I've made the mistake of putting larg fractions of my money into a single play and paid dearly.
for Team Player: Averaging down is FOOLHARDY my friend. Follow Emini's advice. no matter what anyone says, it's NOT GOOD PRACTICE.
Good to see this thread alive again.
Happy trading everyone!