TOE Chart, page-157

It's not authority ShyBoy, just the experience of living through....Or more to the point, attempting to trade against the market thinking i knew better. I've seen enough (Read arse kicked) broad based sell offs to learn not to fight the market, that's all. I see a very large gain to be had here but not until Wall Street sheds plenty. Unfortunately, our fundies and deep pocketed investors watch what they have done overnight along with what's expected tomorrow and trade accordingly. The ASX200 (XJO) is only just above the November 2007 peak. What else can be said but WTF? when Wall street within the same time frame is almost 4 times higher than then.

The best way i find to gauge sentiment is to look at how markets trade into the last few hours. If markets are continually fading into the close, i regard that as fighting the market by holding anything except for maybe the flavor of the day or week, providing that your entry is well under the volume weighted average price of the day before. Why under the VWAP you may ask...Because without bad news, the market is unlikely to sell you into the red. I've found that you can throw darts at a board and make money when markets are rising but if you don't get back on the fence when they fall, you just end up giving it back, bit by bit. Pardon the pun but you have to know when hold them and fold them. The weak response to the TOE selling has nothing to do with TOE but the fact remains that anyone buying TOE over the past few days are in the red.

We all, well most made money over the past 18 months thanks to the US Fed and now, for myself at least, cash is a position....A very safe one.
Just don't consume all your money averaging down guys, keep some powder dry in case Wall Street loses a good volume of the massive amount of hot air accumulated over that time.