Market Update: Short Covering House Of Cards Continues
November 4, 2008 11:31 AM
This market is an unbelievable house of cards. I have said many times that there is nothing to stop the fall all the way to near the lows - once we do eventually reverse. This move is election day short covering. How to trade this, I am not sure. They sold the open, we went lower, then cleared the high. That leaves no points to be long on future weakness, as I see things. But I also said that today may not trade like a “normal’ day, and it clearly hasn’t.
If this was a normal day, I would expect this gap to fill and that means it would fill into the close, most likely. Either way, this issue will be revisted I believe - eventually. Once this election is over, and we see weakness, the shorts will rip this thing apart. When that will happen, I am not sure.
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