Archive for the ‘candlesticks forum’ tag
{The Japanese Candlesticks Justification for an Ongoing Short Stance in the S&P 100}
{
How fast time does fly. It is now over a year since the stock market posted a key long-term Top. It was confirmed by a bearish Candlestick pattern, and has been marked all the way down during the decline by a assemblage of nearly identical bearish patterns. The financial implosions attending the near-collapse of the whole national and world financial system over the past several weeks, resulting in passage of bailout legislation on a scale never before imagined or seen, impelled many stockholders to a state of enormous worry about the value of, and prospects for, their hard-earned savings.
}
{
How unfortunate it is that such a multitude of people have worked so hard all their working lives to invest a meaningful sum for old age, only to be faced with a serious decline in the worth of their stocks – and the prospect of worse to come. What is even more unfortunate is that they have no appreciation of the protective steps which they could have taken beginning in October 2007, and ought to be taking right now and well into the future.
}
{
There is no need to be a “deer in the headlights.” The Candlestick patterns which have formed during the past several weeks indicate the gravity of this secular bear market, and the absolute need to take counter-measures in order to protect the value of one’s portfolio.
}
{
There is “insurance” to be had. It can be purchased in the form of Inverse Stock Index Funds and Inverse Stock Index Exchange-Traded Funds. There is a multitude of them available on the market, promoted by respected firms. The goal of such funds is to increase in value when the particular Index to which they are geared decreases in value. Many of them work on a one-to-one basis – as an example, a particular Exchange-Traded Fund might be structured to increase one dollar in value for every dollar by which the NASDAQ 100 decreases in value. Many of such funds are leveraged, say on a two-for-one basis.
}
{
I believe that the country is ensnared in a long-running bear market which is only now getting up to speed I am in favor of the idea that every investor should create and maintain a “Perpetual Short” position, using either an Inverse Stock Mutual Fund or an Inverse Exchange-Traded Fund as the vehicle; and that he or she should be depositing funds into that “insurance plan” consistently, on a regular basis. It is even possible, by so doing, to completely offset the possibility of loss in an investor’s portfolio. surely, any degree of offset would be a welcome development. In addition, it is possible to make an absolute profit, too.
}
{
Stock and Index prices move in waves, which are clearly discernable on price charts. While a ”Constant Short” plan can be of great value in protecting the worth of one’s portfolio, deft use of Japanese Candlestick analysis can also be very useful in the identification of countertrends to be harvested for profit in upward countertrend corrections in a secular bear market. Various methods of technical analysis can also be a boon in spotlighting the likely end of a countertrend rally and in pointing to a great opportunity to “pounce on the bounce” for enhanced profit to the downside.
}
Mail this postPopularity: 40% [?]