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Market Recap: The Game Continues As Mentioned

October 27, 2008 3:55 PM

Well, the game continues, as I mentioned Friday. Buy above the lows and sell into rallies. I said Friday that traders will continue this nonsense until they get scorched. They know where they are wrong, so they have the numbers to be long above. Today was a very difficult call as we had zero intraday lows that i liked. It was all about buying above Friday’s low. I had thought we were going to continue higher once the Dow cleared Friday’s intraday high, but had not noticed that the SP did not.

At any rate, this game will continue, most every day, until it no longer works. With the Fed coming up, I am not certain of the direction as the market will likely get very volatile - one way or the other - after they cut.  The market does seem very weakhowever, as pre-fed tends to rise as shorts will likely sit on the sidelines. That tells me legitimate buying interest is marginal, at best.

Close Update: They sold it HARD into the close. It fell 150 points in the last 5 minutes. The same setup that happened Friday happened today. The Dow had to clear 8445 into the close, it got to 8440 and fell back. We had no firm intraday low to stop the fall - and down she went. This is why i mentioned I hate sma related trading - especially in this market. Once the market get’s below them, there is nothing to stop the fall. We saw the result in the last 10 mins today.

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

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