Don’t Be Fooled!

November 23, 2007 | Posted by Jorge

Markets are up nicely this morning with the Dow jumping a little over 100 points and the S&P bouncing off the 1420 support line.  Please remember that today is Black Friday.  Most investors are still at home with family and friends and as a result volume is extremely thin.  When volume is as thin as it has been so far, it’s much easier to move the market one way or another.  If need be, take small profits throughout the day but expect the volatility we’ve seen the past month to continue Monday once everyone’s digested their Thanksgiving meals and return to work.  Remember to watch the 1420 support line for the S&P.  If the markets can’t hold that level, I would expect that the market could enter a bear cycle. From the Option Addict who went through the bear cycle a few years ago, bear cycles are much more difficult to trade in since quite a bit more trading is done on emotion and not on technicals or fundamentals.  Remember… bull markets make people lucky, but bear markets make people pay.  Have a great weekend!

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