There is just no lift at all when there is good news now. Sneak attack announcement about Paulson throwing money at the banks soon gave us a mini blip spike for a few minutes. In a grossly oversold market like this, any bit of good news should send it up like a rocket , this market goes nowhere but on its merry way lower. There are sellers lined up now for every tiny rally that this weak market can conjure up. We are in deep doo doo. Also there are a billion bottom callers. This market needs to take another step down, maybe another 100 point chop in the S&P will do it. But we're not going to be launching any kind of signficant rally from these levels. Buyers above 1100 are gone for a long time. Those chasing rallies have been buried alive with the countless fakeouts and 1 day rallies. Only the toughest dip buyers remain, and it looks like the market will soon shake them out as well.
everytime the market open higher the Short seller and bear sell the rally I have noticed that If i were day trading i would do the same right now in this situtation
This is like the modern version of 1987, but with worse fundamentals. Perhaps we'll just chop up the 23% down day of 1987 into quarters and go down 5+% a day for 4 straight days. That would actually be a lot more painful than a 1 day 23% crash.
this is not a grossly oversold market,this is a bear market.This is how stocks react in a bear market.We are not in a bull market.Obviously you are new at trading.
I dont disagree but the last 2 weeks of heavy selling past the lows of 2005 would seem a little over done imho.
This market is setting up for a huge washout. Stay flat until you see people giving away stocks hand over fist. It's coming shortly. Either tomorrow or monday. I've dabbled in some day trades over the past weeek, thinking that the market was bottoming, but when sellers come in right at resistance every time, I take profits. Watch the 8700 area in the DJIA, some friends down at the CBOE said that's where they're taking it.
i dont think its a washout.. stocks are reflection of the reality of the financial implosion..stocks are catching up to bear,leh,mer,ms,gm,wm,aig debacles... Ive seen 20 yrs of markets and nothing has ever looked like this precarious.
Markets don't go in a straight line. There is going to be a bounce. Today looks like pure barf action to me. I'm not stepping in front yet. But tomorrow, a morning barf would be a great buying op.