Betting on News, Oscillating Around the 5-Day MA

2008/8/22 15:32:30

Since the past few weekend news-betting attempts all ended in failure, enthusiasm seems low this time. But hope still hasn't died, which creates today's dilemma of oscillating around the 5-day moving average. Therefore, Monday's opening will determine the short-term breakout direction. Technically, once the 5-day MA flattens and then opens its mouth downward again, a new market low becomes a matter of course.

Of course, for those who exited at the highs, this news can also be a gamble. It's just that if it doesn't materialize by Monday, you need to act extremely fast. If you don't have that skill level, forget it. Even if there really is some news — if it's truly substantial — you can perfectly well enter at the small sub-level second buy point that appears after a high open pulls back. This is simply the reverse of trading a big drop.

Currently, from a medium-term perspective, the technical key is whether the weekly and monthly charts can ultimately construct a bottom fractal. Otherwise, even with news, it'll just be a one-day or few-day affair — nothing more than a sprint.

Weekend — rest well. Things are busy on this end too. Signing off. See you.