Wednesday, November 21, 2007

Market Intraday Rebound

Funny thing happened after I posted I am beginning to nibble on ETF's, the market seems to have had an intraday rally. I am extremely skeptical at this point. I don't think anything has changed. Until the Fed steps in we are going to crash right past 12500 and then the fire works will start. But as an investor you cant hope for stuff to happen you have to plan to protect your capital. Read the market like you read your patients and objective tests and this patients EKG looks bad. Its almost time to put him in the unit.

Posted by prudentstockinvestor M.D. at 1:06 PM

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About Me: Disclaimer

$BPCOMP

$BPCOMP
Extremely Oversold

Regarding Chart: BPCOMQ

This is the lowest close seen in years, usually a sharp and violent rally follows these moves enhanced by short covering, this is no time to short and start making a shopping list.

Bear-ly Hangin" In dustrials

Bear-ly Hangin" In dustrials
Dow Graph: 11/20/07
The Dow looks like its fighting for its life here at the level. It's no surprise there was a vicious bounce off the trend line as shown in the chart. Unfortunately, the last time we had that five hundred point reversal day was caused by the Fed stepping in, there has to be a similar event that helps the market or there is more pain ahead. The Fed minutes said nothing the market really liked, we sold off hard and bounced back hard as we hit support. This was just a reflex rally we may have to get one more really painful selloff to get around 12500.