Market Opportunity Moment

We are in an outstanding market moment right now. Remember, buy low sell high.
Well, the market is going higher right now. It passed the Thursday, August 11, 2011 test. So, if you were thinking about going long, now is the time before the market close (1:00 EST). As I mentioned in an earlier post, tomorrow should be a dickens of a rally. Same for Tuesday, August 16.

Why am I confident that the market is going higher?

There are several reasons.

First, the market was gravely oversold. I have not seen the market this oversold since the bottom in March 2009 and October 2008 bottoms. Even if we are bearish long-term, bear markets can offer epic rally opportunities for profit.

Second, the probabilities favored a low today. When the market kept rising into the final hour of the trading day, that was the signal to go long. Yes, it was.

Third, retail people were scared on Monday and Tuesday. They were crazy scared if you looked at the daily Trin readings. I could see the money just coming out of the market. That created a buying opportunity but you had to trust your signals; i.e. that even if the world is falling apart and the nightmare is upon us, the market will return to overhead moving averages. It just does. When you place your faith in overhead moving averages, then you have the stomach to weather the dramatic falls in the market.

Fourth, if you simply followed your emotions and feelings, you would have sold early this week or late last week. I may discount Jim Cramer but he is on the mark when he says that a panic is the worst time, the absolute worst time, to sell. You have to just forget about the market during a crash, think of something else, and know that the overhead moving average will not be denied.

Finally, we are in the last hour of the trading day as I type. Smart money is at work right now!!! Imagine how fearful the shorts are....They know what is coming tomorrow. I know what is coming tomorrow. (Thank you, Stock Trader's Almanac). The market keeps rising and shorts keep covering. I can feel the upward momentum in the market. This upward move is not false like we saw on Tuesday. This move is for real.

In short, opportunity is a powerful force! I believe that. Right here, right now, we are in a moment of historic opportunity. May we all enjoy the upward climb to the heavenly embrace of overhead moving averages. (OMG, the market is now @ 1180 and keeps going up!! These are the times when traders make their year.)

Your too excited market analyst,

Wink