No Rebound on Tuesday

Discussion in 'Trading' started by betapro, Jan 22, 2008.

  1. betapro


    In the previous selloffs last August and November, the average investor still believed in buy-and-hold and buy-on-the-dips. They stayed invested when the markets fell and subsequently rebounded.

    This time around, the average investor is praying for a rebound on Tuesday only so they can SELL EVERYTHING.

    The pros realize this and will be selling relentlessly tomorrow; they will not give the small investor any chance to sell on a bounce.

    Perversely, the bigger the drop at the open tomorrow, the less selling there will be from small investors, because they will be waiting for the rebound. It will be a very long and very painful wait...