Market View Update ( 10/28/08)

 First, congratulations to those who won big yesterday in such a great opportunity that market offer to us.   For those who did not make it, don't lose your confidence, there are always opportunities there, I guarantee you next time you will do better.
 

     Second, I suggest don't trade today.  Keep your profit; don't give back to the market. Once you have a big profit, you become less caution and over confidence, that's the formula to lose what you have.

     Another reason I recommend not to trade today is: It is always tricky on FED meeting announcement day, especially after a big up day.  Just take one day off, and cool down a little bit, watch market to tell you where she could go..

Back to market view, yesterday 3 major market indexes have great advanced with 10% gains for every one of them. The volume was picked up in late session, but it is still not impressive to qualify for a bottom call.   To qualify that, we need to see a follow up in next few days, market advance with increasing volume and break up down trend line.  Before we get that, we should still be cautious and prepare for possible pull back again.

     I still think market need a big flash out before it can establish a solid up wave. So  don't read too much into yesterday's big rally, just treat it as strong bounce for now and use this chance to release some of your trapped position.

We will see market direction more clear in next few days. I don't expect today we will see another big rally in addition of yesterday 10% gain.  So don't be too aggressive in the buying side. We are still in bear market, before we get further confirmation yesterday is just another bear market rally.

JM2C

Good luck!

( Every Wednsday, Market View Update will post in InvestSmart Group and here at same time.)

[new88]

老大, 你总是对的, 我听你的.

[xixi08]

thank you so so much.
That is exactly what I want to know for today.