Wednesday, September 3, 2008

State of the Market - 9/3/08

I had a post all ready to go and emailed it myself from work, but I don't know where it is now - lost in cyberspace somewhere I guess. I am not going to write the whole thing again. Anyway, if it comes, I will post it later. Right now, because the indices got support at their 50 day moving averages, I think we are still in the choppy market. Until they break below this area, I have to assume that. Lucky us, huh? I made some trades today that I wrote in the "lost post" but don't expect to be in them long. Yesterday's reversal looks rather meaningless right now because I don't know that I can consider today follow-through.

The real problem with shorting right now is that we are getting oversold. I wouldn't worry if we really got hit hard today, but we didn't, so I am expecting a little bounce. Of course, since there is absolutely nothing that looks good to buy, I guess I am going to go back to sitting on my hands and doing nothing. As much as I hate to write that, I think it is true.

I keep saying that eventually we will break out of this chop. Sometimes I wonder. Good luck Thursday.

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