. Use panic selling as an opportunity to position for profits. The bears may continue to shake out weaker longs, but I expect the bulls to begin bringing stocks back over the weeks ahead.” Mid week it looked like sellers weren’t quite finished shaking out the weaker longs. My observations could be considered an understatement, as subsequent stock market declines constituted a very healthy “shake out.”
Falling share prices hurts the bottom fishers and when they get their stops picked off the bottom will be in.
This past week, stocks moved still lower on record high oil prices, financial sector woes, Federal Reserve futility, and international tensions. The dollar was down and gold was rising. Fear is pushing stock indexes to the next levels of support. We’re on watch for a turn, as we look to stay a step ahead of the crowd.
So don't panic and sell now even a few stocks went up last week that were not oil and agricultural related.
Like CMED was up 9% in one week. This is one of Chinas strongest plays now and their economy is booming due to the preparations for the Olympics. But don't think that will stop the economy after the games are over. The Chineese will have had a taste of the better life due to the inteaction of the world and they will want more after beiing so repressed for so long.