Wednesday, August 31, 2011

31 Aug 2011

Mostly ran out of steam today despite a good open.  This is as expected considering my short term indicator.
Remains overbought.  However, remember that we like to look for divergences in consecutive peaks before taking large action.  As was the case last fall, this remained in positive territory for a long time.  Personally, I got out of the positions that showed profits of only 0 - 4% to keep them from falling and taking MY money away.  I may be premature, but I don't care. Remember, paper profits can slip away at times, but it is far worse to lose your own money.
No longer oversold in the medium term.  Like last summer, I'd expect this to flatten out and try again at the hold short peak, but no two times are the exactly the same.

"Speculators in stock markets have lost money. But I believe that it is a safe statement that the money lost by speculators alone is small compared with the gigantic sums lost by so-called investors who have let their investments ride."
Jesse Livermore

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