Root for a Lower Low
I was asked what might lead the market out of the abyss, if and when we ever get that low for which I keep aiming in the second week of June. If a low comes from capitulation -- which is still not evident in the charts -- then typically the stocks getting "smooshed" at the end will be those that rebound the most. Yes, "smooshed" is a technical term!
As for Thursday's trading, I must note that, as soon as we saw a whoosh down that rebounded, my inbox became filled with folks asking if there were positive divergences. Let me explain what a positive divergence is. The first thing that's required is a lower low in a major index. Without a lower low, there is no such thing as a positive divergence. There is nothing to compare -- period....359 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.