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Without the greater fool theory, wouldn't trading be impossible? Why
else would you buy breakouts Hmmm?
Besides, one can only see in hindsight who is the fool. Whenever I enter
a trade, I just assume I am the fool, so I am not surprised, if the
market gladly lets me know that fact... In the last two/three years and
since october in particular, the fools were the sellers of tech, buyers
of non tech. That's maybe hard to swallow for some, but that's a fact.
We shall see in six months who are the next fools, maybe the same, maybe
the reverse, maybe both, or none... I don't know. All I can do is trade
the trend and the breakouts, thats all my map is showing! That's the
only way I know to reduce chances I am the fool...
Gwenn
Ira Tunik wrote:
> The greater fool theory in full force. Ira
>
> wallst wrote:
>
>> One cant help but to be in aw of the strength of the Nasdaq. Its
>> interesting to see how even though the Dow is well into a short term
>> correction, the Nasdaq continues to climb even higher. So how much
>> higher can it go before we see some kind of sell off?and if and when
>> it does start to sell off, how will the market handle it? Over the
>> last month or so I have observed what appears to be a pattern that I
>> see on a daily basis. What that pattern is, is just before a trend
>> reverses, I start to see the market oscillate with wider swings
>> showing a battle between the buyers and sellers. In other words in
>> a climbing market, you will see the market pull back a little harder
>> giving evidence that sellers are now comming into the market. You
>> will also notice that on this last recent leg up, the market has
>> only barely broken through the previous high. I can not say whether
>> or not these indications are signs that the nasdaq will drop. I am
>> simply making observations as to the things I see. I also feel that
>> there are many new people in the market who has not yet gone through
>> a substantial correction. I know when I first started trading,
>> there were many no no's that I did until I got my hand spanked, like
>> running stops and doubling up when I was wrong on a trade. The true
>> fact here is even with the recent volatility, the nasdaq has yet to
>> take out any support levels, which would suggest that the recent
>> selling that we have seen so far may only be a preview of things to
>> come. But then again now when I think about it back in 92' I
>> remember client telling me he didnt want to buy any stock at that
>> time because he felt the market was overbought. (At that time the
>> dow was trading at 2800). Oh well. =) Troy Pwallst@xxxxxxxx
>
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