Now Dow has fallen by near to 60 points in mid day. Some of you might think this is the end of the bullish run. Mid term wise, we think this bullish run has just warmed up its engine only, possibly will march higher into january earnings. But as there have been so many consecutive up days, a small rest is always needed. This is where experienced players differentiate from the amateurs. Spotting market confidence will tell you to enter at the consolidation or run away with fear!
Look closely at how the market react to news and whether there is a sudden panic will tell you whether Dow might have a small 100-250 points small consolidation or a big 700-1000 points drop.
Look at whether Dow has a 100 points drop will indicate how bearish the market is.
Look at how Dow opens and closes at the end of day will tell you how powerful the bears are.
Look at how the media paints the bearish news and how the market reacts to the news will tell you about the market confidence.
The most important point is........
Look at www.danielloh.com blog every single day to give you a gauge on how to make $! ;)
(Btw, I have received positive compliments that it is a JOY just to read my blog as an entertainment. I am glad about that as I don't like to bombard you with charts. There are too many experts out there! I hope our blog becomes an entertainment and recreation and an educational book. TRADING should be FUN! Do recommend your friends to visit us!)
Just a note, do not be scared by news as news and reaction give us a glimpse to the market sentiment. Learn to embrace down days just like up days as they will tell you whether this run is real or not!