On the 10th I posted here and in the C Fund thread a question concerning the 200 dma, which based on Tom's comments today, helped confirm what I was thinking or where I was going with the question. That is, based on historical information, once we crossed the 200 dma, it appears that until the 20 dma reaches or passes through the 200 dma we will continue to have downward pressure. Based on this recent push down/correction, we still have a little ways to go before the 20 dma and 200 dma meet, which (I think) means some more downward movement. Once the 200 dma is touched or crossed by the 20 dma, the market begins an upward climb, and as Tom pointed out, usually it has a pull back and then up, up and away. (May through July of 2006 look quite similar)
Of course, all that said, I am not a statistician, and I may be stating the obvious, but it helps me to spell it out. Also, the market can and will do whatever it pleases. I'm just trying to get an educated idea on what to expect based on past instances.
I will be taking some out of the market...just in case my thinking is right.
Good Fortune to all!
Of course, all that said, I am not a statistician, and I may be stating the obvious, but it helps me to spell it out. Also, the market can and will do whatever it pleases. I'm just trying to get an educated idea on what to expect based on past instances.
I will be taking some out of the market...just in case my thinking is right.
Good Fortune to all!