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Market Recap: Trend Break, “Blind” Buying Above 900

November 7, 2008 5:10 PM

I am flabbergasted by the close today. It clearly looked like they were going to try and sell this down into the close. It shot down to 910, which I said was support, bounced and then took off, presumably on short covering. The longs were simply not going to give this nonsense up unless 900 cleared and it was a simple as that, regardless of what everything else said. Sometimes things are more simple than they appear. I never believe in support moves, especially when they are directly on big numbers like this. I believe this move is complete nonsense, but I am a bit shocked by the strength of the close today so what do I know.

Here is why I always strongly suggest that charts matter more than news, in general. We clearly had a trend break and longs were sitting on 900. I get all that. However, unemployment is skyrocketing and news broke today that GM, possibly Ford, and I would guess Chrysler, may be running through their cash far faster than thought. GM lost a mere $4 billion and said it may not have enough cash to operate in just a few months “unless fundamentals turn around”. Newsflash to the far less than genius management: It isn’t going to happen. I posted many months ago that this was a horribly managed company and that they should have fired anyone that has even smelled a management job there. This industry is beginning to remind me of the airlines but with worse management.

10 million people unemployed and will get far worse? Shrug, who cares about reality when we have a trend break. Comical.

Written by Tom@StockBlade.com · Filed Under SP Futures 

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