Yesterday the Fed broughtt he big dope ship into harbor again and lowered rates by 3/4 of a point after having already lowered them 1/4 of a point on Sunday. The junkies threw a party, but the problem is that fewer and fewer of them are actually showing up at the party. The market had its largest up day in several years yesterday, yet Nasdaq volume was about 2% under Monday's levels, while NYSE volume shrunk by over 5%. Hardly the type of action I'd like to see on a rally. Not only that, but there are still far more stocks in bearish patterns and showing relative weakness than there are stocks showing relative strength. Look at names such as DELL, CREE, BIDU..the list could go on and on. The clear leadership in this market remains to the downside, and as such heavy investments in cash and some small short positions remains the best course of action IMHO.
this is time to buy... if market makes lows before 2.30 it will rally till the closing bell.. thats what i saw in the past moves... right now dow is down 195.. we might cover 80 pts or so..
Good luck with that guys. In daytrading terms I have no idea what may happen, nor do I really care. What I do know is this. Yesterday was a HUGE up day. Regardless of volume only an idiot would expect today to also be an up day, most of the time after such a big move the market needs to take time to digest what has happened and it typically will do so by giving back some of the prior days gains or trading mostly sideways. So, thats no big shock. The thing though is the volume. There was none of it yesterday. Not only that, leading stocks acted like crap, and there are still many more stocks with weak charts than strong ones. The fed shitting its pants, the market going up on no volume, and there being more weak than strong stocks in the market is not a place a meaningful rally will start from.
thats what the talking fools said yesterday... dow down 181 after jumping 420 points... today the dow should have rallied to 12500+