I haven’t had a good vacation this year and me friend’s wanna go for a trip so we went on a sight seeing trip in Taiwan. It just so happen that donmihaihai also went on a taiwan trip.
Had some internet connection here and there but mostly i am able to tune into the market via bloomberg. Its been another rollercoaster ride again this week. We have a massive up day on Monday only to give back the profits the next 2 days.
Many would have taken a look at the short term SP500 charts and determine that a bottom is trying to be formed here. I am not so sure whether we have reached this stage.
The smart thing is to let the chart tells us where we are right now rather than predict where the chart would go.
The VIX does show that it had reach a high point at 70 plus for the whole week and various sentiment indicators, VIX, Put/Call ratio and no of 52 week lows on SP500 seem to indicate a good buying point.
The question is,after the madness of the last 2 months, who would have the balls to go in and add to your positions. I will leave this to the next article that i will write.