xjo weekend zoomba lounge, page-225

BiggDaddy, Firstly, respect your decision. Secondly, my response was to another poster & was not intended or directed personally at/for you. It would be my stance (or opinion) to anyone who has made the decision to sell now..

I appreciate that holding a large position only to watch it deteriorate day after day can do your head in & subconsciously effect your performance in a non related work environment. Not too mention the general stress it can put on every day life & attitude towards others. I know as I have been there before.

I don't know the full details of your investment strategy, ie whether or not the money you have tied up in the market can sit there indefinitely? I guess this is a very important piece of information and would influence other peoples thoughts on the matter? It is none of my business & I would not expect you to elaborate but from what I can remember from previous posts of yours I was under the impression that it was not money that you needed on a day to day basis. I could be very wrong and as mentioned it's none of my business.

The topic is something that I am particularly passionate about. Big difference to taking it personally as another poster criticised me for. I have a group of very close friends of which none of them have much of a clue about markets however they like to dabble.. I have told them on several occasions, never sell on a big red day as I know in the past they have and then panicked and bought higher the next day (or shortly after) when the market has rebounded and left them behind. This can turn into a viscous cycle where they then sell again as the price of their stock goes lower then their original sell price several days later.. (and it goes on and on and on if you catch where I am going with this). I'm sure they are not the only ones who play this game.

I have told them.. Be patient and wait until the daily indicators are oversold and that is the time to enter (as a basic rule of thumb to those who are not clued up to the markets but as mentioned, they like to dabble). Once the daily indicators reach overbought it's time to sell.. I know pretty easy/mindless strategy right? Well it is but I also make them aware that these indicators can stay both oversold & overbought for extended periods of time. In particular to the downside (ie they may buy in & watch their chosen stock (blue chips only btw) go lower), I tell them, oh well at least you have bought when the market is oversold & NOT overbought, give it some time and you will see gains or at worst if it's really stressing you out you can sell when it comes back to your entry price. Something that can prove a very difficult thing if you buy when the market is full of euphoria & froth!

If they sell on the signal (overbought) and it continues up I say oh well you made a gain right? Just ignore it from here and be patient, let the market come to you and don't chase.. Concentrate on what you do for a living! Don't even look at the market if you are out, just wait for my email as to when those indicators (mainly the stochastic) are back in oversold territory. They know they may not see this email for months but when it comes they pounce again and the journey continues. It is not fool proof but sure beats selling when there has been months of rot IMO

I guess the point I am trying to make is this.. Markets can be very irrational, as the years go by it seems that it has become harder & harder to make a buck. Imo that is precisely the way the big money wants it. Whether we like it or not the movers & shakers have made it increasingly difficult to throw a dart and make a quick buck. They also know the way sentiment & herd mentality works and they play on this in a big way imo.

If you look at the charts I posted on this thread yesterday they are not exactly bullish by any means but I do avoid using terms like "way more downside to come" or "the markets will definitely plunge form here" etc etc, I know there are plenty of colpruts on this forum who like to post this way and it is why I have the majority of these posters on ignore and that "little party room" is increasing by the day as it is something I just cannot tolerate, it annoys me beyond belief. Those posters know who they are and imo they need to take a good hard look at themselves. At the end of the day, anyone who takes the comments of these posters as gospel are novices and should steer well clear of the markets atm imo. The truth is no one knows for sure and so to make big decisions because the herd is bearish is foolish or gambling at best imo.

Look a the monthly chart of the xjo, it's already been flogged! I'm not saying (once again) that it can't go lower but how much lower do you think it will go before the shorters cover & the big money ramp it back up again? Won't be too far away imo. What is almost certain is that they will ramp it soon so that those who make decisions based on what the like of the morons at the head of the IMF (as an example, there are many many more) say will panic and buy in again as it ramps up. Once the mob are satisfied that these punters have their skin back in the game they will take it back down again. At that point those same punters will sell out and turn their back on the market saying to themselves "it's not for me", once again the mob will run it back up and those same punters will say "no sorry" you won't get me this time ... & low and behold it goes up and continues to go up (like the rally from March 09), then when the herd finally get the courage to get back in (when indicators are frothy again) bang they take it down and the cycle continues.. Lesson that should be learned? Stay out of the markets if this is you imo These are extremely volatile and unprecedented times imo and should be treated with the upmost respect and caution.

None of this is advice in anyway and these are just my thoughts.