Discouragement and Aversion Phase ?
After a long price slide, the area where churning takes place is between the Discouragement and the Aversion phase, after a significant decline has already taken place. Often, this appears as a head and shoulders bottom, a cup and handle or a saucer dish pattern. As the public continues to dump stocks, short sellers become bold and bearish. Their views are supported by bad news and poor economic data. Prognostication of lower prices to come is undoubted. This is when everyone knows that the market cannot ever go up again, and that anything, even cash, is preferable to owning stocks.
Tuesday, September 2, 2008
It scares me to post this....
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2 comments:
Again, I see nothing like this. The most market-averse people are saying "no point in investing until 2009-2010", no talk of never trusting it again or anything.
But this might be enough, i guess?
I have to look at every possibility, Like I say "I think stocks are worthless" but that hasn't stopped people from buying them for centuries.
Looking at the possibilities, then trying to figure out which one we are about to fulfill.
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