Market Reversing, We Are Headed For 4-6 Month Bear Market

DJ:DJI   Dow Jones Industrial Average Index
Maybe longer. SELL LONG TERM HOLDS, GET INTO CASH. I REPEAT, GET INTO CASH. 4 distribution days in 2 weeks, mixed with a massive interday drop. Market will get choppy, there will be a dead cat bounce, then the trend is down for awhile. Runs over for a bit. Start looking to short, not right away, just start preparing. SELL ALL HOLDINGS! GET INTO CASH
Comment: I'm using IBD's system for spotting a market reversal
Comment: See that shitty bar there. relative volume is small compared to the previous day, not good. yesterday was a dead cat bounce
Comment: Second biggest point decrease in Dow history. See, was a dead cat bounce. PPT came in.
Comment: Short, orderly market
I disagree. I think it's done dropping. Seems to have a pretty solid support at 23,400 range. This isn't a bubble, the market has been rallying for a reason. Just a sell-off. Time will tell, but I highly doubt we're about to see another 2008.
+1 Reply
alipipefitter KristianB12
@KristianB12, I agree. I think is just a normal pullback, but the rallying will be over for a bit, and the market will be choppy. If you sold, I'd wait a bit before re entering on any long term holdings
KristianB12 alipipefitter
@alipipefitter, Oh I see what you meant. I interpreted it as you thought the market was going to keep going down. Yeah, I agree that it'll get choppy now.
alipipefitter KristianB12
@KristianB12, Basically, it just looked like the market was headed for a pullback. I definitely underestimated the extent of the pullback. What I thought was that it was just a good time to take profits and get into cash, wait. Hence why I said 4-6 month bear market. The trend should continue though yes. You might miss out on some good bottoms, but best to stay out of it and wait for a clear trend to develop again
Would 23242.75 be the imminently next target to look for? How do you see if it is a solid or not support?
alipipefitter andrewau2014
@andrewau2014, all i know is the trend is changing, not a good time to invest for long term holds. good trading action with the UVXY though
You have had a foresight, sir.
alipipefitter andrewau2014
@andrewau2014, Just used IBD's rubric for spotting a correction. IBD is the most accurate because they don't use crazy theories or heavy technicals, they simply use anecdotal evidence by looking at previous market trends. According to the book, "How To Make Money In Stocks", by William O'Neil, 4 distribution days in 2 weeks is almost a sure fire signal for a market correction. A distribution day is when you have high trading volume and a percentage increase, or, and this is more telling, virtually no increase but heavy trading volume relative to the previous day.
andrewau2014 alipipefitter
@alipipefitter, oh I see, 4th - 1st just fits into the definition of 4 distribution days.
jeffreyjim alipipefitter
@alipipefitter, William O'Neil is a good teacher studied his work years back.
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