Many market pundits have been trumpeting Dow 6,000 or LOWER.......
So...why the markets are able to trade HIGHER from October 10Th LOWS????
Why..all the GLOOM & DOOM is NOT taking this market to LOWER LOWS????
I wish all the pundits on CNBC can ARTICULATE this in an understandable language...but do NOT count on it....
Nobody is called back on CNBC for making "STUPID predictions".......they do not have a show which is called "DUMB MONEY" or "HOW WRONG CAN YOU GET" or "CAN YOU EXPLAIN THIS CALL"
Markets are certainly giving the SIGNAL that DISCOUNTING of all issues are coming to an END.......
As this is a once in a CENTURY phenomenon...there is NO pattern which anyone CAN follow...so the best strategy is LIMITED exposure in ETF with best potential SHOULD work out pretty good !!!!
I am only in ETF......
UYM Down 10 cents
HOU.TO UP 3 cents
@12.07 PM following are green in my watch list:
RIMM,MON,CMED,IBN,POT,FXI,NDN,KGC,
DIG,PHM,SSO,CTRN,CCJ,SAY,SPWRA,SNE,
FWLT.
BLOG does NOT give buy or sell.
Saleem
2 comments:
hello all
A good read on shipping companies that I own or follow:One of the most popular tools in technical analysis that is used to predict a shift in a stock's direction is known as the relative strength index (RSI). This indicator's primary purpose is to determine when a given rally is becoming overbought or oversold. Generally speaking, readings near 30 suggest that the stock has been pushed down to an unjustifiably low level, causing most bullish traders to start looking for a good entry position. Given the broad market weakness, it is not surprising that there are many companies trading with low RSI values. However, what you may find interesting is how hard shipping industry stocks have been hit. We believe that many investors will start turning their attention to the bigger players in the shipping markets because this group is currently trading near bargain-basement prices based on their extremely oversold RSI readings. In most cases, traders will use other technical indicators in combination with an extreme RSI value to increase the probability that a move higher will actually occur. Let's take a look at four stocks that have recently been trading in oversold territory.
Company
Market Cap
RSI Value
Diana Shipping Inc.(NYSE:DSX)
1.09B
30.66
+++++++++++++++++++++++++++++++++===
Frontline Ltd.(NYSE:FRO)
2.43B
33.9
As can be seen FRO is over the oversold level of 30
++++++++++++++++= PWS112
Teekay Corporation.(NYSE:TK)
1.37B
34.94
General Maritime Corp.
(NYSE:GMR)
375.56M
31.74
As you can see from the daily chart of General Maritime Corp. (NYSE:GMR), the price of the company's shares have dropped sharply since it moved below the support of the $20 level. The chart clearly shows that the bears are in control of the longer-term direction, but it wouldn't be surprising to see buyers start to step in when the RSI is near 30. Low RSI readings are used by active traders to suggest that the recent selling pressure is becoming exhausted and that the direction is setting up to reverse over the short run. The weakening global economy has made it difficult for companies such as the ones listed in the table to do business and, as a result, share prices of the major shippers have dropped into oversold territory. It looks like we are nearing a bottom and that a bounce may be in store for this group of companies. When looking at the charts, you'll notice that they are all eerily similar to General Maritime (shown below) and when buyers do return, these stocks will likely all move upward in tandem.
Hi Madmax,
Thanks for your hardwork in highlighting opportunity in shipping industry...based on RSI.
Saleem
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