Wednesday, January 16, 2008

01.16.08 - Bear Attack

The inability to put in a credible bounce in the face of the underlying Tick bid was one clue that we would be susceptible to this rout.

I do believe there is a risk of holding shorts ahead of expiration Friday and potential Fed actions. I just wouldn't want to bet on that from the long side. What this means price action-wise through the weekend, I'm not yet sure. For now I'm standing pat with my current exposure -- I did buy a little Intel last night.

11:30AM CST UPDATE: Mid-day inverted head and shoulders reversal? Once again, Cumulative Tick is mighty strong and A-D line is actually fairly flat and slowly moving into the plus side. Financials are flying high AND small caps are strongly outperforming.

1:55PM CST UPDATE: The NASDAQ100 and Dow have stalled at their respective 5-day moving averages... program trades...

2:45PM CST UPDATE: Selling the strength on Treasury Department political wrangling over loan limit proposals for Fannie and Freddie... stupid press release... somebody had better get spanked for that.

Blog Reads:

Rob Hanna on 90% Days and Gaps Down
Steenbarger updates his Indicators


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