- Category: Market updates
- Created: Tuesday, August 27 2013, 3:59 PM EDT
- Written by Raoul Suurmeijer
The major indexes on Wall Street made a significant drop of around 1.8-2.5% The markets opened lower and headed lower all day long. The funny thing was that during the session a sneak preview showed that the indicator initially was bearish for trading on Wednesday as well. But strangely, as the decline continued, it decided to turn bullish at some point. For some reason it 'thought' that this drop was enough and that the short trade was starting to become a crowded place. Avoid 'dumb' talking heads in main stream media, non-trading analysts, self-called experts or Prophets of Doom in general who are all pushing sentiment to ultra-bearish whenever they get the chance just to attract a large crowd. Real traders know that a crowded trade is most likely a bad trade. Avoid the crowd.
For trading the S&P 500 tomorrow, Wednesday, August 28th, the Greed and Fear indicator is expecting a higher close (strong buy).