Thursday, October 30, 2008

The Forty Five Minute Market

I was looking at the chart of the $DJI after the close and noticed that between about 3 pm and 3:45 it dropped over 200 pts. and then melted up. Bullish action by any measure. It was choppy for me today and I was stopped on more than one occasion as a result of all these hairpin turns.

Have all the shoes dropped and is all the bad news discounted? Far from it, but the rally should continue into tomorrow as there will probably be some leftover window dressing. The question is will the fast money hit the exits and start a sell off? I'm still finding it hard to stay long this market for more than an hour or two as the action can turn on a dime and I simply don't trust it. Still a bear market bounce in my view. The bulls are seeing longs they love and I see shorts that I love. Place your bet.

Back in a bit.


About Me

My photo
I am a former hedge fund manager, broker and capital markets dude who now trades for his own account. I love what I do. I will try to post some stocks and an occasional chart that looks attractive for entry.I will also try to point out the idiocy of conventional wisdom and the lack of value added by the mainstream financial media. These postings should not be viewed as recommendations.