I said that the market is getting ready to fall apart yesterday and today market fell apart. These days things happen at jet speed in the market. Monday's rally was a huge sucker trap as has been all the rallies this year. I hope finally suckers would have learnt their lesson and would stop taking cues from the CNBC cheer leading squad.
Even the most bearish of technical analysts had declared that the bottom was in for this bear market. I knew then and there that bears are throwing in the towel at the worst possible time and suckers are getting exuberant at the worst possible time. This market is not making it any easier for bulls and bears alike. It is only rewarding the prepared mind.
Where does the market go from here? The immediate downside target is last week's lows.Once it gives way, the 2002 lows beckon at S&P 770 and Dow 7200.
1 comment:
FRO looks good in the 30's for an IRA, cause the dividend is 35%. With the improvements in GPS, I doubt they crash an oil tanker, so FRO looks like a very good long term investment at these prices.
The new price channel looks like $29 to $40, and the NOV 30 calls are performing delta 30-50, so that's a hot way to play them, without using up all of your buying power
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