http://www.thestockbandit.net/2007/03/13/market-selloff-creates-opportunities/ Trading blog with trading insights, discussion on swing trading, day trading, and trading psychology. Sat, 17 May 2008 00:50:03 +0000 http://wordpress.org/?v=2.0.9 http://www.thestockbandit.net/2007/03/13/market-selloff-creates-opportunities/#comment-5684 Thu, 15 Mar 2007 20:30:11 +0000 http://www.thestockbandit.net/2007/03/13/market-selloff-creates-opportunities/#comment-5684 [...] Emotion was indeed running high on February 27th to contribute to such a massive decline, but since then it has played a continuing part in how the markets have moved. Traders have been timid to scoop up bargins out of fear that they might catch another wave of selling right in the teeth. This was evident in the low-volume bounce after the initial drop, and these emotions were confirmed when the first bounce failed with the second decline on Tuesday of this week. Even Wednesday saw plenty of emotion, as the March lows were penetrated with another triple-digit loss on the DJIA, only to be followed by a dramatic reversal of almost 200 points and a close in the green. [...] […] Emotion was indeed running high on February 27th to contribute to such a massive decline, but since then it has played a continuing part in how the markets have moved. Traders have been timid to scoop up bargins out of fear that they might catch another wave of selling right in the teeth. This was evident in the low-volume bounce after the initial drop, and these emotions were confirmed when the first bounce failed with the second decline on Tuesday of this week. Even Wednesday saw plenty of emotion, as the March lows were penetrated with another triple-digit loss on the DJIA, only to be followed by a dramatic reversal of almost 200 points and a close in the green. […]

]]>