As global markets rallied in a manic spike this week, we note a remarkably similar pattern with the price behaviour of late 2008. Volume continues to be weak and typical of the “two guys trading” lack of institutional buyers which has been a hallmark of bear market rallies for more than a year now. This chart of the Canadian TSX from our market technician Cory Venable captures a similar pattern across world markets to date. Risk warning is high.
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Danielle. Thanks so much for all the free work you put in doing this blog. I check out your blog at least a couple of times every day and always find something interesting. A lot of small investors really owe you a big debt of gratitude for your generosity and kindness.
I wish to echo the appreciation expressed in the prior comment and to extend that to Cory as well.
It is important to me not only to get sufficient guidance on what to do (and not to do) but also insight as to some of the rationales and signals behind your advice and comments.
Having had a respected long always, ‘value investor’ type advisor put every cent of our significant new investable cash (from the sale of a business), too fast into the market in mid/late 2007, talk me out of trades I suggested and into others (or at least try) that I was uncomfortable with, during 2008, and 9, I decided to self manage.
I have neither sufficient investing education nor experience , let alone the time and tools to correct these deficiencies, to permit my head to get in front of my gut (or possibly to the contrary, to catch up to it fast enough to make my moves with confidence). Your blog is a regular read and therefore one of the confidence building sources I have come to rely one.
I learned a long time ago that it is easier to realize on upside potentials when you have mitigated the downside risk.
Bravo