there is no need to sugar coating, Thursday trading action is bearish. Although the market’s negative reaction to bad economic news is disconcerting. What really concerns us is the extreme bearish sentiment among market participants – everywhere we go, people are saying the same thing: “look at the chart, the bounce is over! We’re due for a third leg down of the bear market!” Thursday downside volume also seems to support the working hypothesis that people are look forward to the “next big drop”. And this brings back the old market adage “the watched pot never boils” – especially when things are “too good to be true”. In short, until proven otherwise trading range is the name of the game
February 2008
Capital Essence’s Market Outlook for February 29, 2008. Daily Market Outlook is the technical analysis of financial markets. Features Technical Analysis, Trend Prediction, Stock Picks, Option Strategies. It designs to help investors to understand how to time the market, when to entry, when to exit, how to pick undervalued stocks, how to limit investment risk with right strategies
Capital Essence’s “Swing-Trader Bulletin” for February 29, 2008. Using proprietary tools and candlestick charts, the Swing Trader Bulletin establishes near-term market bias and identifies patterns, trends, support and resistance levels, moving averages, attractive entry and exit points, buying opportunities.
Wednesday trading action had confirmed the validity of the short-term “overbought” scenario that we’ve point out in the previous Market Outlook. As also mentioned, whether this is merely a pause that refreshes or a beginning of something important is remained to be seen, though, since we’re still in a bear market, we’ll continue to treat the rebound from February low as nothing more than a “bear market rally”.

