..Stop the insanity!!
Thursday, October 9, 2008 at 08:00AM Just when you think you've seen everything, you're left with a day of dizzy spells from pre- market to the close!. The extreme volatility is a sign the market 'is full of it ', full of news that it can't digest properly as it's stuffed into you at every hour leaving you choked up!. The VIX remains at elevated levels and down volume most times looks sickly, yet these signs of a final sell- off are not there yet. Seller exhaustion or capitulation are not there, despite the volatility today, the selling is still orderly with buyers coming in off and on during the day. Stocks remain caught in the selling pressure, it's simple as that as all seem to be waiting for that final...get me out now, no matter at what price!
A few developments outside the credit, liquidity issues,
- MON, reacted 'well' to 'average' earnings and this spread to other names. LNN, as well. At this point, if the mkt reacts well to ho-hum earnings it may be a good sign.
- IBM, raised guidance. This takes some stress caused by SAP's numbers on the tech's.
- MT, the steel giant re-affirmed
The hope here is let the market turn it's focus away from all the 'bailout' stuff around the world ( to some of the above) and let it take it's course of working through the credit markets. Also, if the financials show signs of shaking off the lifting of the shorting cap, it could be a huge positive for trading day as well.