DJIM #46 2008
Monday, November 17, 2008 at 08:13AM What looked like a stellar day forming late afternoon with a possible follow through on Thursday's rally left everyone in the dust in the last 30 minutes of trading as the indices tanked 5% across the board in less than an hour. If you witnessed the event you were left scratching your head into the weekend as to what the hell just happened. Well, what happened doesn't need a reason, it just reinforces the volatility is back/ and or just never left. There will be no bottom in this environment as no institutions, fundamental investors will step into a wide low-hi intraday trading range, no matter, if we just did had makings of a successful retest starting off 10/10 lows.
Considering there was no news for the sell- off, it is best to assume it's a plethora of things from the 45-day redemption we discussed playing into any rally to anything else your imagination can draw up. If nothing concrete comes out over the weekend that could have been the lead for the destruction, we should have traders come back and make Monday a green day as heads clear. A tinge of green end of day is almost essential for some confidence in this market. Many also may see the final score as a constructive pullback from a technical prespective, we'll see. All that matters is what we said in the last Journal, this isn't a buy and hold market, still!.
We also can't get to high off a rally like we had Thursday, or to low off a huge sell- off. It's almost impossible to do, but it's the only constructive way to deal with the market or you'll lose your marbles.