Friday, October 10, 2008

I AM NOT CONVINCED

This reversal on the indexes looks good on paper but the reversals in individual issues looks very sloppy and weak. I am more nervous now than ever before. I am getting this GUT FEELING again that we are headed into more painful and scary times next week.

11 comments:

todd said...

Hey Stewie,
Thanks for stopping by my blog and for your kind words of encouragement. Today was brutal for me, but certainly a learning experience which is forcing me to fine tune my rules and guidelines. I broke your Rule #8.
What's most difficult for me at times like this is not having much of a social outlet with people that are in this profession. Wallstreak is great, but can get distracting. Could I impose on you to share your email address so that I might share with you ideas I have regarding my strategies? So I could get your constructive criticisms.
Thanks!
Have a great weekend!

Stewie said...

traderstewie@yahoo.com

HPT said...

The indices finished on a bullish tone. I'm expecting a bounce next week. It doesn't really matter what way we go though now does it. With nearly a 1000pt swing in the dow in a day, you can trade any direction.

J-Dub said...

i agree.

Jase said...

You may be right stewie but I think that after the beatdown this past week not many were willing to jump right in and hold over the weekend. Especialy momentum traders that give a big extra umph to the indexes on any rally.

So with that in mind, the final hour was a good start to restoring confidence.

Something to build on.

If we do selloff to start the week (which we may for a variety of reasons including a final flushout headfake) I think it'll get bought up and we'll close higher next week than we did this week.

Just my thoughts. In reality with this market we could hit Dow 5000 Monday and Dow 10000 by Friday. lol.

upsidetrader said...

stewie
hey bud, evry rally has been met with disaster and this time won't be any different

7000 im a buyer

Stewie said...

yes guys. all good point. I am picturing the JAse scenario in my head. a final flushout monday/tuesday and then a RAMP higher of historical proportions.

7000 DOW seems like a flushout and i can imagine plain delirium.

In the past every weekend meeting between govtment officials has raised optimism only to be met with vious selling come monday. Will this time be any different??!! we will find out in 48 hours when we look at the SP futures quotes.

either way, i am looking forward to this stuff and as i have said before: EXPECT ANYTHING!

lelio said...

it appears you guys are always expecting another washout, after every washout. I guess we will know as soon as we drop to new lows.

I have come up with a different thesis for this market, we go straight up and frustrate the heck out of everybody who is obviously sold everything by now.

I dont know if you remember guys, but 3 months ago the oih was at 230 and we were running out of oil.
ahahhahaha

Market Monk said...

Hey folks, todays rally didn't do much to reverse the damage that has been done to the market. As some of you know I trade systems based on signals that I get from custom indicators that are created from the market internals. What I was witnessing over the last week or so was very shocking to me. So much so that I had to share it via my blog. Today's afternoon rally didn't do diddle to improve these indicators.

A picture is worth a 1,000 words. Check out my blog:
http://marketmonksmusings.blogspot.com/

MM

lightrader said...

I think in a market like this you need to look at the monthly charts and see where the next major support is,I am looking at the horizontal support which is at approx 7,200 for the Dow,770 for the S&P.I feel the market has to fill its gap and get to these support areas before the bears turn bullish.

Orange Trader said...

It's gonna be a bear market for a while. A retracing of the sharp decline we have is going to be fast and hard. The problem is, even if the bulls make any gains, if they see even a slight drop in price action they will sell off and we see all red again.. Its going to be very volatile for a while!

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