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I like Rogers take that this upmove could last a few days [only few days? not even a few weeks like the Bear Stearns bottom? who really knows?] and that we wouldn't be shocked if VERY SOON we see a 4% + drop.
Sep 19 21:13 pm
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All Comments by investor88 »Nothing Happened - Or Everything [View article]
His following the 200d moving average is a great idea, but I might add it matters whether the SLOPE of the 200d is up or down. Also if the shorter term averages like the 20d and 50d are above the 200d or below the 200d.
Following trends using moving averages has its draw backs. JasonC says trend following would miss the reversal moves from the bottom like the 1000 pts Dow reversal we see in the last two days. To catch such rare bottom reversals, maybe analysing market perception is better, what George Soros called "reflexivity".