one of the traps early on in trading careers is the passive failure method.... when prices are going down, the mind believes, that they can't possibly go even lower...so in a passive state when guards are down, there is a tendency to catch falling knives.... let the next few days playout...don't be a hero...
400 points more on Dow... SP 40 points more... <a href="http://content.screencast.com/media/7c05f19b-b863-46d2-bbda-9739c0cf9186_af258a57-ae15-4d9b-aa17-719f3d118ede_static_0_0_07022008-221427.jpg"><img src="http://content.screencast.com/media/7c05f19b-b863-46d2-bbda-9739c0cf9186_af258a57-ae15-4d9b-aa17-719f3d118ede_static_0_0_07022008-221427.jpg" width="3193" height="1023" border="0" /></a>
why 10800 is critical <a href="http://content.screencast.com/media/85d16ab4-fa4f-4755-aaa7-5016a18a638d_af258a57-ae15-4d9b-aa17-719f3d118ede_static_0_0_07022008-222402.jpg"><img src="http://content.screencast.com/media/85d16ab4-fa4f-4755-aaa7-5016a18a638d_af258a57-ae15-4d9b-aa17-719f3d118ede_static_0_0_07022008-222402.jpg" width="1423" height="1019" border="0" /></a>
This is very true. It's human nature to say "hey, this company is solid, is already down x%, and who the hell would sell, let alone not buy it here." And then it plunges some more. Mr. Market is one pissed off mofo.