Thursday, August 27, 2015

8/27/15 Guessing where stocks get stopped at least temporarily

While the general market had gone sideways before the panic holders of DVY were happily getting their 3+% dividend yield.  Interestingly, DVY had lower highs along the way.

I think the price will go back to the $74 point support that is now resistance.  I think after a consolidation the price will go above $74 in large part I think that because of the high GDP print and wanting to believe in it is probably very strong.  Also, I think the consensus will think that a rate hike is priced-in what with the averages being lower.

A lot of people will think 'if only I just had gotten out on the first day of the panic', see notation on the chart above, and will sell at that point figuring they are doing really good having gotten a second change to sell out.  And you have to realize that people are sitting on massive gains and taking some profits 'won't hurt'.

So I think 2040 is resistance.  Some technicians claim 2040 to 2050 as resistance based on the lows in January, March, and July.

1 comment:

  1. I did not sell my DVY and did not add to it. The thought of adding did cross my mind when the the yield was 3.38%. I still like the portfolio make up and if we every get a 20% correction I would then add to DVY.