Theproblemwithcurrentmarketisthat,despitetheconditionwascreatedbecauseofthelackofriskcontrolbyfinancialinstitutions,peopletradeslikethemarketwasnotatrisk.ThiswasamplelydisplayedinthelastFriday'saction,themarketopenedhighagainstthebackdropofThursday'sbigspikeofvolatility,eventhoughthemarketclosedslightlylower,theVIXactuallydropped---itisjustunbelievable.Basedontheoverseemarket,tomorrowprobablywillb...[
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Finally,weseesomefear,notbyreadingDQ,wheresomepeoplearegeneticallyoptimistic,butinthemarket.
Forthefirsttimeinquitesometime,$VIXspikedhigher,notashighaswewouldliketoseeasintheleveloflastAugust,butthevelocityshowscertaindegreeofpanicinthefinalhoursoftrading.Additionally,thosestubbornindexes,SP500andDJIA,alas,enteredintotheterritoryofoversold.
Also,assometradersobserved,inthepreviousselloffs...[
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Ifyoufearedfortheworstatthebeginningofthedayandbegintocelebrateattheendbecausethedeclinewassmallerthanyouexpected,youareinforarudewaking..
Todayistheexhibite#1ofprogramtrading...Idonothavetoreadthemarketpagetoknowthatthevolumnwashigh.wheneverthereisanextremenegativesentiment(pre-marketDOWwasdownmorethan100points),yetthemarketopenedrelativelyhigh,youneedbecareful.Someoneistryingtotakeyoursharea...[
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http://www.marketwatch.com/news/story/further-losses-likely-before-us/story.aspx?guid=%7B4B38A52B%2DF094%2D4F79%2D8275%2DF58FDFAD223C%7D&siteid=yhoof[
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TheMarketisbrokendown,thereisnootherwaytoputit.Whatismorediscouragingisthattoday'ssellingcomeswithincreasingvolumn,anditseemsthesellingisundiscriminating,onthestocksIammonitoring,otherthanafewhealthcarenames,almostallofthemaredown,thereisnosectorsimmunefromtheselling.
Obviously,tomorrowcouldbeuglyaswellbasedonthereactiontointel'searning.
Afewdaysago,Wethoughtthemarketprobablywillnotfindbot...[
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Atlast,someencouragingnewsandpositivesurprise,ithasbeenalongtime..
Indeed,thebullsshouldfeelgoodafterbepushedaroundforsolong,butquestionremainsthat:Isthisthebottom?arethetrendreversing?.Asusual,afteranupday,onehastoseesomefollowthroughsifthemarketindeedreverses,andthosefollowthroughsbettercomequickly.
Anotherthingworthnotingisthatthevolumnislight,notaverygoodsign.Itmightimplythattheso-call...[
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ok,justafewsimplepointssinceIhavealreadywastedmorethanonehourtousethisstupidbloginterface
1).morepeoplethinkthelongrunningbullmarketisendingandbearmarketiscoming..
2).thevixis23,wayofffromthehighof31registeredlastAugustandreadingonDJIandSP500indicatestheyarestubbornlystayaboveoversoldterritory.
3).thenextvictimtothebearcouldbe"oil"
4).theonlyhopearehealthcare,agricultureandgold
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AllearsattunedtoChairmanBen,andhedidnotdisappoint.SincewhenhaveweheardfromFedChairmanspeaksodirectly,notinanusuallyveiled,arcaneFedspeak,butinplainenglish:"wewilltake"DECISIVEACTION"tosavetheeconomyfromrecession.DECISIVE?ifactionmeans25bpscut,decisiveactionmustmean50bpsormorecut,preciselywhatWallStreetwantedtohearandmarketroared.
ThegoodnewsisthatFEDandpresident/congressareworkingstimulastohel...[
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Likeyesterday,themarketbehavedlikeayo-yo,onlythistime,itswingstothepositiveside.Itisagoodthingforthebull,otherwise,WallStreetwillbecomeone-sidetradeonlysoon:)
Judgingfromthetradesoflasthoursorso,itisprobablyfairtosaytherearemoreshortcoveringsthanbuying.LookslikeBullisnottheonlyonewhoisjitter,evenbeararejitteryaswell.
Ok,now,wearebackawayfromtheoversoldterritory,willtherearebeafollowupoftod...[
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Themarketisintrouble,nodoubtaboutthat...andifyouarestillthinkingtherewillbeasuddensurgeinthenearfuture,youhavebeenwatchingtoomuchKudlowandCo.
WhenDOWwasdowntothe12800level,weobservedthateventhoughtheindexvisitedthelowsetonlastAugust,themarketiswayfromoversold.Aftertoday's200pointsplunge,wearestillnotintheoversoldterritory,eventhoughweareveryclose.Also,VIXhasnotreachedthehighthatitreachedlastAu...[
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