Is TODAY the day???

Discussion in 'Trading' started by T/A_Bo, Jul 23, 2002.

  1. Dont know about a double bottom, but take a look at individual stocks - ie GE, MSFT. They are downright broken now even with this huge gain in the Dow.

    Those stocks broke after several months of basing and a simple bounce is not going to do it.

    And while a 400 gain in the Dow looks good on the quote screen, on the chart it doesnt even come close to breaking the down trend lines. 8900 is one trendline. Around 10,000 is the next. We may be plus 400 today, but we are still 8100.

    Keep that in mind and stay nimble, short or long.
    #21     Jul 24, 2002
  2. T/A_Bo


    Yeah, except today is the day the market rallied 400 points after I went long, so it holds a special place in my heart :D :D :D

    Good Luck and Good Trading!

    -Bo Yoder
    #22     Jul 24, 2002
  3. T/A_Bo


    Make that +488.95 :D

    If you have anything held overnight, you might want to look at it afterhours, things are NUTS. Took some partials in IDPH and AMGN miles above their close. Feed some shares to the chasers who missed the dinner gong and are desperate for a seat at the trough...

    #23     Jul 24, 2002
  4. Is today the day? In my opinion, no. Of course I could be wrong, but I think this is a good opportunity to get short again, depending on how the market starts tomorrow.
    #24     Jul 24, 2002
  5. bosstin


    Correct me if I'm wrong, but don't we have a key reversal in the S&P and Dow EOD charts? We may not get a basing pattern...well maybe on the Nasdaq

    When was the last time we had this kind of reversal?
    #25     Jul 24, 2002
  6. T/A_Bo



    Reuters Business Report
    Stocks Rebound, Biggest Gain Since '87
    By Haitham Haddadin

    NEW YORK (Reuters) - Stocks surged on Wednesday, the broad market chalking up its biggest gain since October 1987 and the Dow adding a whopping 488.95 points, as investors stampeded back to buy stocks at prices cut down to multiyear lows after three weeks of relentless declines.

    "At some point people get sick of fear and take a stab," said Brian Pears, head of equity trading at Victory Capital Management. But, like others, he was wary of the rally. Market watchers note that many powerful advances have been short-lived rallies in the bear market that began in 2000.

    The market had another volatile session in extremely heavy trading. A record high 2.7 billion shares changed hands on the Big Board and more than 2.4 billion on Nasdaq. Volume has surged in recent days as investors struggle to discern their next move after days of declines.

    It was the first time more than 2 billion shares were traded for four days in a row in NYSE history.

    The blue-chip Dow Jones Industrial average (CBOT:^DJI - News) surged 488.95 points, or 6.35 percent, to 8,191.29, according to the latest data, after dropping more than 2 percent in early trading. It was the second largest points gain in the Dow's history.

    The tech-loaded Nasdaq Composite Index (NasdaqSC:^IXIC - News) added 61.18 points, or 4.98 percent, to 1,290.23 after tumbling 3 percent in the morning. The Standard & Poor's 500 (CBOE:^SPX - News) climbed 45.73 points, or 5.73 percent, to 843.43.

    For the Dow and the S&P 500, the rally represented the largest one-day percentage gains since Oct. 21, 1987 when the Dow rose 10.1 percent and the S&P surged 9.1 percent in the wake of the stock market crash earlier that month.

    "We're way due for a bounce, but fundamentals haven't changed," said Matthew Johnson, managing director of trading at Lehman Brothers. "We're still dealing with terrorism, accounting issues and fundamentals, which appear to be showing signs of further deterioration."

    J.P. Morgan (NYSE:JPM - News) surged 16 percent after the financial giant's chairman said it acted properly and with integrity after congressional investigators said it and Citigroup (NYSE:C - News) helped hide massive debt at bankrupt energy trader Enron Corp. (Other OTC:ENRNQ.PK - News). Standard & Poor's gave another boost to the stock by calling worries over the Dow member's liquidity positions "unfounded."

    Aiding a sense of corporate house-cleaning was news of the arrest of three members of the founding family of Adelphia Communications Corp. (Other OTC:ADELQ.PK - News), which filed for bankruptcy last month.

    Government officials led the related executives away, claimed they "looted" the company they created over 50 years ago. Two other former executives also were arrested on federal securities and bank fraud charges.

    Other bits and pieces of news propelled the market. President Bush will consider new measures to boost the U.S. economy should it take a turn for the worse, his budget director said.

    U.S. lawmakers also boosted sentiment by reaching final agreement on a massive corporate reform measure, preserving much of a Senate bill requiring stricter oversight of auditors but adopting stiffer criminal penalties passed by the House.

    Bargain hunters swooped into the market after stocks sank to new five-year lows in the wake of days of wrenching selling. But market watchers were skeptical of the market's sudden spike, recalling investors' habit of selling into rallies to lock in profit in the bear market.

    "We've just had this relentless selling. I think this is a relief rally," said Tim Heekin, director of trading at Thomas Weisel Partners. "It was triggered by a combination of asset allocation and technicals and in the past these rallies have only lasted a day and a half or two, so time will tell.

    "Frankly, I think there's too much negative news out there that's going to prevent this market from going up a lot."

    The Dow drew fuel from Exxon Mobil Corp. (NYSE:XOM - News), up $3.01 at $33.93, after Banc of America Securities raised its rating on the oil giant, saying its stock price looks attractive. Drugmaker Merck & Co. (NYSE:MRK - News) also lifted the Dow, jumping $3.55 to $42.60, or 9 percent, after approving a new $10 billion stock repurchase program.

    "We have been so oversold in this ugly market we are certainly overdue for this kind of bounce but we had three or four of these big rallies this year with no follow-through so the real test is what happens in the days and weeks ahead," said Michael Kayes chief investment officer of Eastover Capital Management.

    "Companies are in there buying their stocks and that has helped, and others are saying they will sign their financial statements or expense options, so there's bits and pieces of news that are helping."
    #26     Jul 24, 2002
  7. Yeah, except today is the day the market rallied 400 points after I went long, so it holds a special place in my heart !

    You tellem Bo!...Your money is where your mouth is.....Betta than alot these chomps ive seen round these parts! hehe !

    -Flyin it High
    #27     Jul 24, 2002
  8. trade4me


    Longer term I am very bearish, as post bubble periods don't end so quickly or nicely. However today seemed like we put in a temp bottom that may last a few weeks. In my opinion we trade sideways to up until the moving averages play catch up. Will short rallys and cover on the dips for a few weeks.
    #28     Jul 24, 2002
  9. EricP


    Reminds me of the old TV commercials...

    "Bo knows football...
    Bo knows baseball..."

    => Bo knows the stock market??? Go Bo!!! Great call yesterday! I'll look forward to seeing you on CNBC sometime. :)

    #29     Jul 24, 2002
  10. Uh, how about the 5th or the 15th? Today's was somewhat larger then those two, but the market was also very oversold this morning.
    #30     Jul 24, 2002