Australia - Stock Market
The markets are testing the support and confirming it. This also looks like it could go up from now on. It's not only the graphs that tell a story. Have a look at the news. All the forecasts are pretty bad. I have established earlier that forecasts are pretty much useless in terms of predicting the market movement. It is natural that at the darkest hour the situation looks so bad that all the forecast are gloomy. That makes sense. That's one of the reasons markets ARE down. Obviously, that leaves room only to go for the better at that point.
I read that after Merryl-Lynch write-off some are hoping that this might mark the beginning of the end of credit crunch. I hope things go nice and slow from here, markets get to recover properly, and everything goes for the best. There is something in the air that signifies the things are moving in that direction. At least there are no more bad news popping up all the time. Oil is down significantly. Inflation is high and expected to go down as the economy has slowed. None of the major banks went under. Everyone has corrected their earning forecasts for the next 12 months.
Just as I said on Wednesday when markets hit the low, that was the best time to buy. Only it was quite difficult to break through the stigma of bad news and smell of blood surrounding the market at that time. But then there was a short jump, coming back to confirm the support, and now I expect to see upward movement from here.
What do you think? As I said, it's not only the technical analysis that predicts this sort of movement. It's the current situation and various sell-offs that happened recently. There is not much hot air left to sell. Prices are pretty much at the real company values. Whoever is patient to wait for the next bull market can have their savings/retirement/house deposit grow. Hope this is not just a wishful thinking. That's why there is this blog, so we can go back and have a look at the comments in certain periods, while comparing it to the market index graph. :)
The markets are testing the support and confirming it. This also looks like it could go up from now on. It's not only the graphs that tell a story. Have a look at the news. All the forecasts are pretty bad. I have established earlier that forecasts are pretty much useless in terms of predicting the market movement. It is natural that at the darkest hour the situation looks so bad that all the forecast are gloomy. That makes sense. That's one of the reasons markets ARE down. Obviously, that leaves room only to go for the better at that point.
I read that after Merryl-Lynch write-off some are hoping that this might mark the beginning of the end of credit crunch. I hope things go nice and slow from here, markets get to recover properly, and everything goes for the best. There is something in the air that signifies the things are moving in that direction. At least there are no more bad news popping up all the time. Oil is down significantly. Inflation is high and expected to go down as the economy has slowed. None of the major banks went under. Everyone has corrected their earning forecasts for the next 12 months.
Just as I said on Wednesday when markets hit the low, that was the best time to buy. Only it was quite difficult to break through the stigma of bad news and smell of blood surrounding the market at that time. But then there was a short jump, coming back to confirm the support, and now I expect to see upward movement from here.
What do you think? As I said, it's not only the technical analysis that predicts this sort of movement. It's the current situation and various sell-offs that happened recently. There is not much hot air left to sell. Prices are pretty much at the real company values. Whoever is patient to wait for the next bull market can have their savings/retirement/house deposit grow. Hope this is not just a wishful thinking. That's why there is this blog, so we can go back and have a look at the comments in certain periods, while comparing it to the market index graph. :)
Posts
No comments:
Post a Comment