Sunday, April 18, 2010

Dow - Magnitude of wave 2


Friday's 125 points pullback for Dow can either be the starting of wave 2 or it is the sub-wave vi of wave 1. Further drop from here will confirm that it is the starting of wave 2. A 3% correction will bring Dow to around 10,800 as shown above.

If it is wave 2, traders will tend to sell and buyback, investors that has not much time to follow the market will tend to hold and bear through the consolidation phase. For volatile stocks if the timing is perfect (very difficult, need close monitoring), the difference in price can be substantial. But if the stock is not so volatile and with poor timing, one may buy back the stock that he has sold at a price higher than his selling price.

It is all about timing and luck. A person's Bazi is important, it is important that there is this element of indirect wealth in his Bazi and how good is his annual luck pillar.

Daffodil daffodil daffodil




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