We need follow through either way. Either a huge down day to new lows or one or two sideways sessions and another 1%+ upside day. Both are equally likely in my book and until either materializes I am net equity neutral. Today's rally was impressive looking at up volume % and breadth. NYSE: Up Vol* 2,874 (93%) NDAQ 1,845 (93%).
As soon as the market retraces the drop by 50% I will sell the balance of my open positions. I just hope the retracement doesn't stop at 38%
from yahoo.com: 4:20 pm : One week ago fears that the market was getting ahead of itself, after running virtually unabated since bottoming in July, caught the bulls off guard, resulting in the biggest one-day point decline since the U.S. markets reopened on September 17, 2001. The Dow slipped into negative territory for the year as all 30 components suffered losses. Today, those overbought concerns were thrown out the window, for the time being anyway, as a sense that a bottom has finally formed following a week of aggressive selling pressure gave stocks a sizable boost right out of the gate. The Dow soared 1.3%, logging its best one-day gain since last July; 29 of 30 components finished with gains. The S&P 500 and Nasdaq also had their best performances of the year as sellers ran for cover. "as a sense that a bottom has finally formed following a week of aggressive selling pressure gave stocks a sizable boost right out of the gate. " FINALLY FORMED....4 trading days later and a bottom has finally formed, who are the fools who write this. "The S&P 500 and Nasdaq also had their best performances of the year as sellers ran for cover." ha, too funny
17-May-06 11,410.13 11,412.28 11,139.17 11,205.61 2,830,200,000 11,205.61 16-May-06 11,428.21 11,520.42 11,334.64 11,419.89 2,386,210,000 11,419.89 15-May-06 11,380.43 11,485.61 11,273.65 11,428.77 2,505,660,000 11,428.77 12-May-06 11,500.01 11,551.40 11,336.96 11,380.99 2,567,970,000 11,380.99 11-May-06 11,639.29 11,660.58 11,449.74 11,500.73 2,531,520,000 11,500.73 I just posted a similar quote on the other forum..... About 3 occasions last year during that correction that many thought it was time to buy when it wasnt.