Yep, possible H&S alright. All this crazy volatility is characteristic of a market reversal. Stocks lost a lot of credibility this week. We're probably in a Bear but nothing in this game is a sure thing. Gov't and FED meddling like crazy to stall the natural process. There's a possibility they'll succeed.
With Feds on a rate cutting binge and Congress pushing up an economy stimulus package at fast speed, I would not like to be a burnt out charcoal colored bear at this point. The thing is people have seen you hands and the fear has turned to the point of hope. I donot expect much courage from my fellow Americans as they are still wallowing in "post holiday depression syndrome " . ..But some of us have the nerve to stomp out these lying conniving Wallstreet cockroaches, and continue trading to the upside defying your weak tactics.
Keep adding your shorts and become a burnt out charcoal colored bear hanging by the window sill peeing in your bank account.
Gov't and Fed are running the country right, they donot run the markets. You just donot like your dark spell broken, its lot more comfortable in that dracula hatch of yours without a beam of sunlight, YES ?
If these S&P's don't get above that 1370 as fast as they broke down from it we will see new lows. It's classic edwards and magee or most pivot point analysis for a swing low that is broken to get tested before heading lower. People are talking 1406, I don't see more than 1370, but who knows...TOugh to hold contracts long overnight in this environment, the good news is out, but is all the bad?
No. The 75-point cut was a direct response to -500 futures. The FED is using market action as an indicator of confidence and as a means of affecting confidence. Pension funds are heavily invested in the markets. If the markets get creamed then millions of retiring boomers depend on Gov't support. There is no distinction between 'the country' and 'the markets'. I want the markets to go up, but I'm aware of the real presence of danger in the current situation. Please note that I allow for the possibility that FED/Gov't intervention and manipulation may succeed. All this volatility reflects the uncertainty about the next few months. The stakes are very high.
Well, Looks like another "sunny market day"....I was expecting a sharp steep rally, and no, I am not participating. I think all the bad news is in for now. However, as soon as this rally is over, I will go short. I think the safest way to play this market is selling into rallies.
Quote of the Week. Wish they didn't have term limits . . . George Bush is the GREATEST U.S. President, ever!!! Donald Rumsfeld (Secretary of Defense) was the GREATEST !!! Colin Powell (Secretary of State) was the GREATEST!!! Michael Chertoff (Homeland Security), was the GREATEST!!! Christine Todd-Whitman (EPA), was the GREATEST!!! Alberto Gonzales (Attorney General) was the GREATEST! And now Ben Bernanke, the GREATEST Fed Chairman ever! TOTAL INCOMPETENCE by literally every single BUSH appointee.