The market rolled over today but magically came back towards the end of the day to regain S&P 900 and Nasdaq 1600 level.
This is market at its best. It's trying to confuse bears and bulls alike. I am positive that it has its sight set firmly on 2002 lows. The smart money is trying to muddle the picture here by staging these late day rallies. The next time S&P goes below 900 and Nasdaq below 1600, I do not expect the market to come back before making new lows.
It seems most think that the market is well supported at these levels. Their logic is that the smart money is finding value in stocks at these levels and hence these late day rallies. My thinking is that it's just a smoke screen. Time will tell.
10 comments:
Good posts Vinaydh. I know you are expecting market to go low but are you sitting on sidelines or shorting the market right now.
Thanks. I am short the market. Walking the talk :)
I've been reading with interest (and pointing you up) everything you've posted at the Slope. You called it and I appreciate what you've been contributing!
Thanks
Do you post your comments intraday. For example right now the market is up from its low. Do you expect this bounce to fade and market go further down. Again thanks for doing what you do.
bunty sarda,
The easy money has already been made by who ever was short coming in to today. I will let others fight it out now and re-evaluate later. It can go either way as emotions are running high. But If we keep going up from this level then it will be just a trap. Now it's better to wait for the market to tip its hand.
thanks cybercyl.
Great stuff. I've been trading for years and I'm impressed by your calls. Keep up the good work. I've been short the market and am holding a short over the weekend. I believe today was a bull trap by the way we closed setting a new closing low breaking below the triangle. Alot of bottom fishing clogging up the market, but fueling the next leg down. Also, way too many felt we would crash today which is just postponing the inevitable. Great work.
thanks plastik129.
GOOD BLOG VINAYDH THANK YOU!!!!!
good post, vinaydh. I agree with you. The market seems to test 2002 low before rebounds.
i also post my view at vahntrader.blogspot.com
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