Quoting smikesterDislikedWe interpret all of them, together, as indicating not just a possibility, but a probability, that prices will decline soon if not immediately. We intend to so indicate in the next issue of our Japanese Candlestick Investment Newsletter to be published this weekend.Ignored
I see profit taking coming, technical sellout, check fibos, smoke a fatty, load your longs.
The real deal here is this: All of this run up since March was propped by the earnings.
Earnings may not be that trustworthy, but in a world of Countrywides, Madoffs, "Cramer says don't sell Bearn Stearns / Bearn Stearns explodes in the following morning" and trillion dollar stimulus package, earnings are BY FAR the most trustworthy among all the bullshit.
Earnings mean: are the companys, whose stocks we buy or sell, making money or losing money? The answer so far was: They are not making the money they should be, but they are not losing money like if it was the end of the world.
Bottomline:
1)- September is known as the lousiest month for stocks, which alone, can contribute to a selloff
2)- Next earnings report season starts in October, so if this is the most trustworthy indicator, there is no point in keep buying right now. Wait and See. (important remark: not every trader in the world trade the 15min chart - yeah, that's a shocker, I know)