Phil Davis of PhilStockWorld has an excellent article out this morning, as always.
In his unimitable style, Phil points out to the McClellan Oscillator, which is also one of my favourite technical indicator.
Phil shows that the Boyzs have been manipulating the market on a regular basis every month. They panic us to sell stocks to that they can buy cheap and then pump it up so that they can sell high. Isn’t it the same argument I have been making all along? This is happening like clockwork quarter after quarter.
Apart from various TA, which I am sure are great for trading, market is always ruled by greed and fear. Greed builds up slowly and price increase leads to more price increase. Fear acts all of a sudden. Imagine you are alone in a room, reading a thriller and engrossed in it. Now imagine your partner entering the room silently and screams the hell out of you. What will you do? You will be startled, panicked and throw the book and jump out of the chair. After a minute or so, everything is cool and OK.
Today’s situation is similar. The Boyzs are trying to panic us.They have panicked us. And we are looking for information wherever we can find them. What is a regular housekeeping matter has been turned in a power grab by the Republican Party and they will pay heavily for this. We deserve the politicians we elect and the misery they bring along with them.
I have been in this situation before and only thing I can tell is what I would do. Just close eyes and stop thinking. If the market goes up big time, I will sell. If the market goes down more, I will buy.
I do not think the world is going to end on 2nd August, I think it is one month down the line.