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Market Plunge, Now What

June 26, 2008 11:39 PM

The market got crushed as has been my “feeling” after the Fed was over with. There were reasons for this, but mostly it was two reasons. i did not see any rejections of a low and I felt the shorts would try and take the market apart because the longs could no longer count on a rate cut to support the market. This is why I posted Tuesday that I “smelled the hammer”.

Ok, that is all history, now what to do is all that matters. Should you “buy cheap” as all the Talking Heads will be saying? One word, NO. Wait for a FIRM rejection of a low here. I would say the odds of this being over is slim and almost zero. Anything is always possible, but it is extremely unlikely. I would guess that the probability of going higher and not clearing today’s low eventually is far less than 1%, but just a guess. Be careful long unless you are scalping. A market collapse is not entirely out of the question but if that was going to come, it should have happened today, most likely. So I believe that is somewhat unlikely.

Written by Tom@StockBlade.com · Filed Under General Investing/Trading Commentary 

Comments

One Response to “Market Plunge, Now What”

  1. Tom@StockBlade.com on June 27th, 2008 10:33 am

    If we clear todays low late, trouble is very likely…

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