TradingMarkets Top 5 Of The Day
Welcome to TradingMarkets.com Top 5 of the Day!
In this nightly feature, the editors of
TradingMarkets select the 5 best and most insightful (and sometimes humorous)
excerpts from all of the articles and blogs that have been published throughout
the entire day.
Here are today’s selections:
Joe Corona from:
This market needs a rinsing!
“…Never
mind all the oversold readings, etc. When a market reacts poorly to good news,
it is telling you where it is headed. The psychology has flipped. Good news is
ignored, so-so news is bad news, and bad news is a disaster. As Dr. Steenbarger
correctly pointed out in his article Monday, fear begets fear.
Things that have been ignored until now because the market has been going up
will now be front and center. The avian flu? It has been spreading out here for
a year and a half (I am in Asia), but nobody in the US talked about it because,
hey, the market was going up!
Now it’s going to be under your bed and in your face, because the market is
going down. This is how the psychology flips.….”
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Chris Curran from:
Why I suspect a selling climax
“…Apple
Computer’s revenue miss was pressuring the futures after hours. The extended VIX
and the high Put/Call ratio continue to point that some real fear has some
market players quaking in their boots. Be alert on Wednesday for some early
weakness and some selling climax action. …”
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Gary Kaltbaum from:
A bounce is possible, but focus on what matters
“…I
received a lot of emails and complaints about my stance on Alan Greenspan and
the Fed. Funny, I am not seeing any more of those complaints. The bottom line is
that the Fed has been behind the trend and behind the curve for years. I find it
amazing that after inflation is already in the system, they decide there is
inflation. Didn’t they know that oil products go into everything including your
Reeboks and your Nikes? They are now in a box as they feel they must raise rates
to whip inflation but at the same time, is causing a massive sell-off in
consumer stocks and probably cause a major slowdown in consumer spending. I can
go on and on about Big Al but I will be nice.….”
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Jes Black from:
Do you own Gold? It’s time to take profits
“…The
setup is the same now. Gold looks to have topped and should pull back to at
least $460. This should coincide with a strong rally in the US dollar as it now
pays 3.75% interest, not 1.0%. If the dollar breaks out, gold bugs should look
to pick up the metal around $430.….”
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Mike Kestler from:
These 4 stocks are poised to move
“…Refco
(RFX) was a stock that I traded very actively Tuesday and I am looking to trade
today as well. Unfortunately, Refco was halted and did not start trading until
2:45 PM EST. RFX was halted due to a pending investigation from the SEC. RFX
opened at Monday’s low of $15.60. There was an extremely large offer at $15.61
and because of the negative news I immediately looked for an opportunity to go
short. By identifying large sellers in the book as well as in the tape I
entered into RFX a number of times to the downside. Since RFX was down over 60%
over the past few days I would continually lock in my profits and look for
another entry point to go short. RFX seemed to find support at $13.00 so when
large buyers began appearing in the market I felt I had enough support and
confirmation to go long and buy the bounce. In a highly volatile stock you have
to lock in your profits and look to get in again because you never know when
that large buyer or seller will come in and force the specialist to widen his
market.….”
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