Wednesday, August 24, 2011

Was It A Good Time To Accumulate ?????

Was it a good time to buy now? That was the question my friends were asking. My advice to them is to stay out for a while because we don't have any clear indicator or signal that allow us to go in. At theses moments if we take a look on how the Dow Jones Industrial Average fares, they seem to be facing some uncertainties. Right now if we ever try to trade, it might be a short lived market so we might be facing more risk than reward (hope I was wrong).

Looking at the Dow Jones Industrial Average chart, we might be having some up and down market sentiments with the current trend showing a downtrend market. Any more sharp drop will be minimal in these few days toward end of August. My current assumption was based on the chart.

If we take a closer look, we might use previous data (happen in 2007) before the financial turmoil that happen in Aug 2008. The meltdown of sub-prime in America. It's all begin during the year of 2007. The chart that I have posted shows that there is a similarity in between the two big blue circles that I have posted on the chart. One happen in 2007 and another one in 2011.

We might take it as guidance for us in our future trade. We cannot assume that it might be following the same pattern but we need something to guide us in order to protect our investment. Basically we know that the Dow Jones Industrial Average is heading towards the downtrend, hence we need to be more careful and alert all the times. Any trade at these moments will be short lived (holding for short period) ...... from my point of views.

Any more sharp drop will be treat as an opportunity to accumulate and during the rebound periods we can unload any of the shares we accumulate. As I use to mention any accumulations will based on the right timing. Not every falls can create an opportunity.

No comments: