Valid Rally or Short Covering?

Calendar November 8, 2007 | Posted by Jorge

Today the DJIA was down over 200 points on comments made to the Senate by Bernanke.  The last hour or so of trading saw a 180 reversal in the DJIA and the S&P  and seeing them close only fractionally.  My question to you is this.  Was today’s rally a result of dip-buyers taking advantage of the sales or was it a result of the bears covering their shorts?  The technicals for the DJIA and S&P have broken down and as a result I would expect more downside in the near-term but today’s action doesn’t justify that thought.

Category Categories: Market Pulse | Tag Tags: , | Comments Comments

  • Already one step ahead of you. My confidence is a bit shot so I'm stepping back for a couple of days, reloading during the weekend, and hopefully executing next week. I worry, however, that next week is options expiration week.
  • Even my money management strategy could not save me this time. Lost quite a bit. I think I should get my money out of the market and go on vacation for some time.
  • It's just a mess out there. I cashed almost everything out this morning. I'll wait until things clear up a bit or play more of a limited risk/reward with some call/put spreads.
  • I really have no idea what today was but its hard to be short for a extended period of time.
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