Jim Cramer was screaming "a bottom" on his show Mad Money today. Thing is, could he be right at least once ?
This is nonsense. The only thing that happened was a short covering rally. When we were down over two hundred points today people decided to take profits for now since we've had alll down days the last week and half and the odds of it to keep going down without a rally were narrowing. My take is that we'll probably go up another hundred or so and that's when you can short again or if we hit the 9 ema. Remember like Livermore would say that the path to least resistance is down. All bad new we be greatly felt by the market. All good news will be discounted.
agree.... I was listening to kudlow and they were talking about a potential bottom???????? They sounded like fools. The bottom is not yet in, I think the dow sells off even harder in the coming weeks closing somewhere below 11500. Im not falling for this rally just yet, Im actually going to add on some shorts and inverse funds going into Friday morning, MSFT could give the market a lift if earnings are good which I hope they are because I want to go back on the short side very soon.
Next week is when the big follow thru days should occur for this to have any teeth. I don't usually use charts, but that is a classic head and shoulders on the s&p with alot of room to the downside.
1595-1605 on the SPX, cant agree with that one at all. There is no way we see this market just pick up from here and forget about everything from credit problems to record foreclosures, there is no possible way we see a bounce of any kind like we did after FEB 27th and AUG 16th. There is major resistance now on all indexes, SPX 1400 dow 12750 nasdaq 2450 I would be going short on any bounce the next few days, Im going to add some short positions hopefully around DOW 12500-12700, I think the federal reserve will limit the rate cut to a max of .25, I just cant see them doing a .50 BP cut. The markets are not done selling off.
its definately a bear. - intermediate highs brokern <200day and 200 turning down. short squeeze rally on the Hedge funds shorted to the max. happened plenty in 00-03 for those that were round then
To me the question is not where is the bottom, but where is the top of this "reversal".... BTW, Ben got pounded at Davos. They basically called him and Greenspan an idiot for causing asset bubbles rather than managing the course of the economy. Love it!