I have yet to see real fear during this downturn, ok, maybe in some of the mortgage lenders and homebuilder stocks, but not in the market itself. I am talking about a 4-5% down day where it looks like the end of the world is coming. Granted, we are not back to those volatile days in 2000-2002 when 4% moves were rather ordinary, but I think a lot of hedge funds are under stress right now. Especially the put selling hedgefunds who are going to be facing a tough options expiration Friday and could panic by selling off holdings today or tomorrow. These prices are really not that cheap, I don't think you have bargain hunters coming in until the S&P hits around 1300.
I hope people here took note of my posts this morning, I was trying to help out longs who were waiting for a bounce. Selloffs occur much faster than bounces. Be careful of the new bear market.
You don't need to help out those longs.. If they're foolish enough to not detect changes in trend that began since the past 3 weeks (down move since mid July, a retrace, and then a down move that took out last wek low) and get out or at least decrease their positions then they should not trade.. you or anyone else won't be able to help them..
I also agree here with dalodoma. Also the only way to detect a bottom here is based on sentiment, and seeing as I'm anticipating a crash... not closing out my positions until I see a panic article on the front inset of www.msn.com
You did an awesome job... you got the longs out at the exact low of the day yesterday. Now the ES is 75 handles higher.