Saturday, October 25, 2008

WEEKLY SECTOR WRAP-UP (Oct 20-24)




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Posted by John C. Lee at 10/25/2008 08:15:00 PM
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5 comments:

Anonymous said...

Hi wallstreet survivor player here, AMGN since earnings came out moneyflow in the stock seems to be bullish, your thoughts ? thank you

October 25, 2008 at 10:50 PM
John C. Lee said...

How did you determine bullish money flow? Did you look at accumulation/dsitribution and/or the CMF?

AMGN is at the 50-day MA and testing it. I would buy on the next pullback as it makes a higher low.

October 26, 2008 at 2:12 AM
Anonymous said...

Hi John

Do you use Elliot Wave in your analysis? Do you think that the market has already reached the despair stage that we could be due for an intermediate bottom?

Apparently, lot of blogs are predicting a huge market crash this coming week in light of poor GDP number coming out this coming Thursday.

Is there any evidence to suggest that the materials and oil would make a recovery soon? As you can appreciate the whole markets are pretty chaotic - exchange rates, copper prices, gold - being sold down.

It would appear that SPX is leaning towards a break to the downside. Would the free fall continue?

If stock market is a truly a discounting machine - wouldn't it have stop reacting to all these bad news by now. Clearly no one expects any good earnings or growth over the next few quarters and yet the market kept crashing with every announcement made.

Also do you believe the hedge funds have finished selling in light of panic redemption.

Would appreciate your views. I have just discovered your blog, and I am going through your past comments with interest.

Thanks

October 26, 2008 at 7:27 AM
John C. Lee said...

hi anonymous.

I use EW only for longer timeframes.

All I'm going to say is that we can't close green tomorrow, then we're heading lower for an unspecified amount of time. Why is tomorrow so important? It's the last stand basically. We cannot break this support level.

There will be no "quick recovery". People need money to fuel a rally, but they lost it all, so where's the buying power coming from?

The market is discounting, but the market doesn't know how far we're going or how long this will be. This is new to all of us. We can't discount what we don't know.

No, hedgies are still liquidating, but the majority have done so. The larger firms take time to unwind $50-$100 mil positions without depressing their own position.

Please get a name in the future.

October 26, 2008 at 4:50 PM
Anonymous said...

Hi John

Many thanks.

October 27, 2008 at 2:32 AM

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