Thursday, October 2, 2008

State of the Market - 10/2/08

Same old story today and I once again don't have much to say. The market sold off hard today even with the Senate approving the bailout bill. Is it possible we rally hard if the House reverses course and also approves it?? Yes, it is, which is why shorting right now is hard, among other reasons. But as you saw on Monday, if the bailout vote fails again, then things could get even uglier than we have seen recently, especially entering a weekend where I am sure people do not want to be holding onto stocks. Even if it is approved, maybe the market sells the news anyway.

We are in a situation where day to day we could be up 500-1000 points or down 500-1000 points and I have no clue which it will be. I am not a daytrader and can't sit at my computer all the time now that I am working again, so I remain in cash. To be honest, I am glad. I don't think I would enjoy this market even if I was trying to trade it. I know it is hard to sit and do nothing, but it is often the best thing to do.

Good luck to all. If this bill is voted on tonight, then I have a feeling tomorrow might be the craziest day yet.

3 comments:

Anonymous said...

Forget about politics and fundamental side of the coin, just do what your chart tells you.

You know that even weeks ago your chart told you to short rally, yet rumors of bailout, makes you hesitate for weeks.

Turn off the TV and don't read newspaper and look at chart only, then you'll see more clearly without all the noise(news).

Mac said...

You really think technicals are driving this market right now??? I think news still is and that makes technical trading difficult. I know there is no way I would not have been chopped to bits the past two weeks. I am honest enough with myself to admit that.

Mika said...

This market is so beautifull and it´s also so deeply technical. All the waves, wave sizes and fibonacci targets makes perfect movements. Deeper and deeper the movements are more and more exacts they take reversal and same occures in FX market. I personally hope it would stay like this for a few years, but it seems we are coming final point soon.

Love it!

Regards, Mika