Ugly Picks
Dear Diary,
The markets got kicked in the nuts pretty hard on Friday. Similar sell-offs happened in the beginning of January ‘05 and in January ‘04. In the previous years, they marked at least 6-month tops on the Nasdaq. That is to say it took at least six months to rebound and make a higher high. It takes time to recover from a hit like that - it leaves an impression.
One of the market’s leaders, GOOG, also got nailed.
Both GOOG and the Nasdaq closed below their 50dmas.
What a week to start trading for a living! I think it is kind of good, though. A reminder that the market is wild by nature and out for blood. Proceed with caution.
A friend of a friend, who is a trader of futures, gave me some advice as I begin to trade full-time. He said, “You are never as good or as bad as you think you are.”
Don’t forget to vote for the stock market blog remainder contest!
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