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.
Thursday, November 8, 2007
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I really have no idea what today was but its hard to be short for a extended period of time.
Comment by Bubs — Thursday, November 8, 2007 @ 5:37 pm
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.
Comment by Jorge — Thursday, November 8, 2007 @ 6:29 pm
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.
Comment by Peter — Friday, November 9, 2007 @ 9:16 am
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.
Comment by Jorge — Friday, November 9, 2007 @ 9:24 am