Wednesday, September 10, 2008

Sept-11 The forseeable future

The data show during the election year, the final two months would be positive in average. It does not mean this year will be positive but it clear shows in the history, green color has better chance to appear.

If the major indices have filled the gaps, I there is a good chance for a end-of-year rally for November of December. Therefore the strategy is very clear: Accumulating stocks in lows of September and October and hold them until 2009. In the bear market, it is always very decent rebound that may take the DOW up more than 1000 points, thus people say making money on the long side would be much easier for traders in bear market than bull market. Steady bull market only gives some space for people play with sector rotation, while the best strategy would be buy-and-hold. Bear market with high volatility is heaven of traders, just like a Chinese idiom: Hero comes from era of chaos.

No comments: