11/21/2007
Good morning everyone as i mentioned yesterday this market bounce was just reflexive and so far there is nothing on my screen but red. I suspect we are getting close so i am going to start taking some small long positions in ETF's, which I will build as we get closer to 12500. No pain no gain.
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.
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.
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