Capital Essence’s “Swing-Trader Bulletin” for March 04, 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.
3 March 2008
Capital Essence’s Market Outlook for March 04, 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
Friday massive sell-off is indicative that market participants were too nervous to holding onto almost anything going into the weekend. The action is also known as “panic selling.” Panic or capitulation selling can be very scary – almost every market crash is a result of panic selling. However, since the main catalyst behind panic selling is that investors are selling in reaction to pure emotion and fear, rather than evaluating fundamentals. So, it’s belief that there after panic or capitulation selling, there are great bargains to be had. Because people who wanted to get out of a stock, for any reason (including forced selling due to margin calls), had already sold. Prices should then, theoretically, reverse or bounce off the low. In other words, capitulation is the sign of a market bottom.

