if you believe the market topped on 10/21 for the year, i doubt you'll be slapped silly, except by profits. I'm starting to think there will be some acceleration to the downside coming.
The institutional traders pushed the Dow to over 10,000 to get the public excited. Now, the institutions are taking their profits. After they run the market down sufficiently, they will pull up quickly. All those individual investors who got spooked on the way down are out and will miss out on the next push forward. Patience is the key.
They also know that the gap fill is also being watched by many and there are a lot of shorts with stops above the gap. I would not be surprised if they take a run at those stops.
Finally someone who makes sense. We are near the end of the rally. Today brought the Dow right under 10,000 for a nice double top. The market ran on complete fabrication and deceit. There was no economic expansion in the 3rd quarter when you take out the cash for clunkers and Gov. bailout/stimulis programs. Take out the Gov. spending spree and what you have is more severe contraction, hundreds of thousands more unemployed, hundreds of thousands more foreclosed homes and all will accellerate in the 4th quarter. They're Goal/ To make it seem that everything looks great, that is when they are going to pull the rug out from underneath the investors, everytime. The time is geting near, when they figure that they have got all the dopey stupid dumbell newbie herd trader money in the market as they can get, the market will fall like a rock and they will already be short and scoop up all the dough. The last week has been major distibution, whether the day was green or red, they are handing off the bag. This little uptrend is the last small C wave up on the major and last E Wave(5th wave) of the rally, when it is done, we are going to enter the Catastrophic C wave(final and biggest wave down) in the bear market. In the 1929 Crash, you had a initial panic(Wave A), then you had a "market rally"(Wave B) to where the indices regained 50% of it's value(just like now) while they ran the propaganda that everything was improving while if fact the fundamentals, job losses and foreclosures where getting worse all the time(just like now). When the truth finally couldn't be hidden from the public at just how bad the situation was, Catastrophic Wave C began taking the dow down 90%. Do not think it can happen again? Watch it has already showed up in the charts. I play the uptick when we get good propaganda like today, however I do not hold overnight and keep a itchy trigger finger. If you mentally prepare for Wave C, and are ready for it, you will make a fortune, or at least enough to survive the Kondreitieff Winter. G'Day