The gap down of friday was closed today. Was today just pump, and would Thursday/Friday be the dump days? I sold everything in the few minutes after the close. If it moves higher, I am on the side line, if it gaps up tomorrow, I will short it at first sign of weakness. Otherwise, I will be on a sideline (definitely will not buy it).
All I can say is the market traded up to a resistance point today and ES is down 2.00 or so in the after market. Merrill Lynch is expected to write down several billion in assets tomorrow. Will this be enough to cause the market to pull back from the resistance or will the market ignore it and push through? That is up to you to decide. There are some on this site that will argue the point one way or the other with 100% certainty on their parts and but one of them will be wrong. So look at the charts, know what I said and play the trades as you see it.
I think pump. Reasoning is that the short side was way overcrowded by some big money and needed to be taught a lesson by the Fed. The next one will be the Dollar. But there will be down days coming, just not as violent as in the past because the Fed is trying to stabilize the market even if it violates the laws of free markets.
I also thought that we were at a potential resistance, and that the upside is not worth the risk. The thing that I wanted to do is to time a short, but I did not find it was screaming "short me". But they may gap it down tomorrow, and if so I would miss on the down side.
So what do you think about the rest of the day and tomorrow now that we have a session going on in light of the title of this thread?