Wednesday, January 2, 2008

01.02.08 - Couldn't Quite Break VWAP

Traders tend to lighten up and/or reinstitute shorts every chance they get on days like this... VWAP is the Volume Weighted Average of price.

PM UPDATE: Worst first day of the year since 1932 (Correction: 1983)? Come on CNBC, percentages are the only thing that matters -- that's really sensationalizing the matter. Doesn't change the fact that it was ugly. But, hard to know what to make of the first day of the year. Still a lot of tax moves out there on top of that fairly dower news.

An awful lot of technical buy signals -- I'm only taking them incrementally on the way down this go. Mood is as negative as the news and I don't want to be losing fingers on this one. As I've said for a while, if we do retest recent lows, this time I can see them breaking, and possibly hard at that. Exits on bounces are going to make it hard to hold for the longs. How is that for sensationalism?


No comments: