Comments on: Today’s Market Decline and Implications http://blog.afraidtotrade.com/todays-market-decline-and-implications/ Helping traders overcome fears and emotions in trading Thu, 09 Feb 2012 14:53:15 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Active Trader http://blog.afraidtotrade.com/todays-market-decline-and-implications/comment-page-1/#comment-1356 Active Trader Fri, 08 Jun 2007 15:33:59 +0000 http://blog.afraidtotrade.com/todays-market-decline-and-implications/#comment-1356 WOW, what a nice thing to find my thoughts benefiting others. I have 10 goals I write down each day and one is: "I sincerely try to help as many people as possible with investing and reaching their personal goals". You've really made me feel that I've taken a small step toward that here. Thanks for reading my blog...I love your insight on this blog. Take care and have a great weekend. Sincerely, Rich WOW, what a nice thing to find my thoughts benefiting others. I have 10 goals I write down each day and one is: “I sincerely try to help as many people as possible with investing and reaching their personal goals”. You’ve really made me feel that I’ve taken a small step toward that here. Thanks for reading my blog…I love your insight on this blog. Take care and have a great weekend.

Sincerely,

Rich

]]> By: Corey http://blog.afraidtotrade.com/todays-market-decline-and-implications/comment-page-1/#comment-1355 Corey Fri, 08 Jun 2007 03:31:41 +0000 http://blog.afraidtotrade.com/todays-market-decline-and-implications/#comment-1355 Thanks, Joe! I wish I could have made more money off it! Momentum divergences are extremely tricky to time - we know they exist and that's a fact. Buying pressure is waning on each successive price swing, but when the 'music' will stop, it's virtually impossible to know. When will the yellow light turn to red? We don't know. What we do know from study and research is that momentum divergences that get extended tend to correct to the point where they were first observed or beyond. It is like a spring that, when pulled, will snap back at some point. I was actually about to post 'yet another' momentum divergence index chart last night but decided against it because my analysis and commentary has not changed and I felt readers were tiring of my 'momentum divergence' broken record. Divergence corrections are good in that they unwind the tension and allow possible further price appreciation from 'bargain hunters' and retracement traders. We'll see which force takes the day in the "buy the pullback" vs "run for the hills" crowd! Thanks, Joe! I wish I could have made more money off it!

Momentum divergences are extremely tricky to time – we know they exist and that’s a fact. Buying pressure is waning on each successive price swing, but when the ‘music’ will stop, it’s virtually impossible to know. When will the yellow light turn to red? We don’t know.

What we do know from study and research is that momentum divergences that get extended tend to correct to the point where they were first observed or beyond. It is like a spring that, when pulled, will snap back at some point.

I was actually about to post ‘yet another’ momentum divergence index chart last night but decided against it because my analysis and commentary has not changed and I felt readers were tiring of my ‘momentum divergence’ broken record.

Divergence corrections are good in that they unwind the tension and allow possible further price appreciation from ‘bargain hunters’ and retracement traders. We’ll see which force takes the day in the “buy the pullback” vs “run for the hills” crowd!

]]> By: Joe http://blog.afraidtotrade.com/todays-market-decline-and-implications/comment-page-1/#comment-1354 Joe Fri, 08 Jun 2007 02:58:55 +0000 http://blog.afraidtotrade.com/todays-market-decline-and-implications/#comment-1354 There it was! The momentum divergencies you mentioned for some time now seem to have discharged themselves into the sudden and rapid decline. It's been a nice ride up so far, though. We'll see where it goes from here. And you were right after all with your warnings. Joe There it was! The momentum divergencies you mentioned for some time now seem to have discharged themselves into the sudden and rapid decline. It’s been a nice ride up so far, though. We’ll see where it goes from here. And you were right after all with your warnings.

Joe

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