Anyway, lets cut the bullshit. The reason I am posting the above heading is to get your attention. The real creme de la creme of this post is the analysis below on where are DJIA and NASDAQ heading to from here.
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Based on the current technical indicators, DJIA is looking to find the first support at 11,000. The political unrest in the middle east is only the excuses for the reason sell down. DJIA is currently very overheating and it needs a catalyst or reason for it to consolidates. The reason political unrest in Libya will be the perfect reason. Both the MACD and Stochastic indicate that DJIA will continue to consolidate lower and tumble down further.
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The Nasdaq Composite is also heading towards the important support at 2,460. Nasdaq has been experiencing upward move from 1,268 in Sept 3, 2010 to the current level of 2,745. That is an increased of more than 115%. I think it is about time for Nasdaq to consolidate down seriously before any upward move to continue. It is also a good reason to flush out all the weak holders and those contra players. Both the MACD and Stochastic indicate that Nasdaq Composite current downturn is just the beginning, it still has long way to go before both the indicators show oversold position.
Based on the above analysis, I would summarize that the recent political turmoil in the middle east is just and valuable and good excuses for the stock operators to swap the position from going long to short. I believe it is just the beginning of their move and more downward punishment for stocks that gained tremendously in the recent term will continue.
For those who wants to go long, may the force be with you.
Not sure what you are trying to say with this post, could you explain further? Thanks in advance.
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