Dow Crossed 20,000

[taiyuu_otoko]

Lots of folks been waiting for this for a while. But what does it really mean?

 

[l_e_g_e_n_d]

Likely will have a 5% run up to 21,000 after breaking historical resistance and a central milestone. Notwithstanding, I don't chase markets up. I buy in crashes. And with Trump running the showing, volatility is guaranteed, so I'll sit on the sidelines for the next four years waiting for this big dip.

 

[Tenacity]

Likely will have a 5% run up to 21,000 after breaking historical resistance and a central milestone. Notwithstanding, I don't chase markets up. I buy in crashes. And with Trump running the showing, volatility is guaranteed, so I'll sit on the sidelines for the next four years waiting for this big dip.

How are you able to time the market?

 

[l_e_g_e_n_d]

If I could accurately time the market, I'd play options. You can't time the market with 100% certainty. Though, I have yet to see any U.S. market which has broken historical resistance levels that had not fallen back 20%+ below the resistance level at some point thereafter.

There will always be a crash: '87, '99, '08, and intermittent 20% corrections in between.

 

[Tenacity]

If I could accurately time the market, I'd play options. You can't time the market with 100% certainty. Though, I have yet to see any U.S. market which has broken historical resistance levels that had not fallen back 20%+ below the resistance level at some point thereafter.

There will always be a crash: '87, '99, '08, and intermittent 20% corrections in between.

So should guys like me continue funding our S&P index funds?

 

[l_e_g_e_n_d]

I presume you are already cost-averaged in at much lower entry in your portfolio anyway. So ultimately how much would an extra 20% of your contribution cost you by entering a bit high at today's price?

I take two approaches: (1) Retirement, whereas I invest intermittently regardless of entry point; (2) Investment, whereas I wait for a good entry point (the dip) and exit at former broken resistance levels.

But my equity portfolio is the piker against my real-estate holdings.

 

[Bible_Belt]

So should guys like me continue funding our S&P index funds?

There's no point in stopping now.

If you were wanting to establish a large position, waiting for a panic sell-off would be the time. Shots fired in the South China Sea would be the next crisis I'd look for.

 

[taiyuu_otoko]

 

[taiyuu_otoko]

End of the gold standard...beginning of "funny money"?

Not only that, but as the "funny money" keeps getting printed, the stocks will keep on rising...

(maybe..)

 

[taiyuu_otoko]

 

[taiyuu_otoko]

On the other hand....

http://www.zerohedge.com/news/2017-01-28/one-chart-americas-corporate-elite-dont-want-you-see

 

[taiyuu_otoko]

Update

 

[Bible_Belt]

The market is thinking that Trump isn't going to be able to pass any trade-restrictive policies like tariffs or repealing nafta. For that to happen, the Republicans would have to like him, and a lot of them don't already. They are going to let him sign off on all the business-friendly Repub agenda, but they're not going to compromise to pass anything remotely populist that he promised.

 

[speed dawg]

So should guys like me continue funding our S&P index funds?

I'm just glad I continued putting money into investments back during the crash. I am rising like crazy at the moment.

I do expect the correction soon though.

 

[taiyuu_otoko]

 

[Bible_Belt]

Fading the gap is a day trading strategy. I'm not sure it works on a multi-day timeframe. The reason it works intraday has to do with the nyse specialist's order volume. If there is bad news overnight, he is going to show up to work with a big basket of sell@mkt@open orders. If you give him a buy at mkt at open order on a day like that, you're his best friend, and he is going to reward that loyalty. Whatever price you pay at the open, it will go up from there, at least for a little while. And it's the opposite for gapping up, you sell short into the open.

The chart above is a breakout, and that is nothing you want to fade. But this exact moment is obviously not the best entry point. There will be a retracement, as taught by Leonardo of Pisa, filius Bonacci, aka The Great Fibonnaci. I had his picture taped on the side of my computer monitor when I was a day trader:

 

[taiyuu_otoko]

The chart above is a breakout,

Perhaps...

 

[Bible_Belt]

Look at that chart, from the high onward, the bounces it makes are all Fib retracements. 1/3, 1/2, and 2/3 are the key levels.

 

[ChristopherColumbus]

Lots of folks been waiting for this for a while. But what does it really mean?

Time to buy some silver.

 

[taiyuu_otoko]

Fading the gap is a day trading strategy. I'm not sure it works on a multi-day timeframe.