The Fed’s bailout of Citigroup and Obama’s announcement of his economic team was good enough news to ignite an up trending day. The government is building a substantial portfolio in the banks and becoming it’s on hedge fund of sorts. The major indices rallied up, with the SP having its best two day gain since 1987. . Rallies in bear markets can be quick and powerful.The next issue will be the next dip, will buyers be willing to come in and create some supports in this market and overcome the selling that may persist overhead.
The DOW popped 500 points amid reports that President-elect Barack Obama will name Timothy Geithner, the current head of the New York Fed, as his Treasury secretary. The rally halted a sharp two-day plunge. Citigroup shares plunged another 20% today as the board discusses selling off portions of the company. The market finds itself back in oversold territory after breaching the 2002 lows. Next week will be a shortened holiday week as we approach the Thanksgiving holidays.
The DOW popped 500 points amid reports that President-elect Barack Obama will name Timothy Geithner, the current head of the New York Fed, as his Treasury secretary. The rally halted a sharp two-day plunge. Citigroup shares plunged another 20% today as the board discusses selling off portions of the company. The market finds itself back in oversold territory after breaching the 2002 lows. Next week will be a shortened holiday week as we approach the Thanksgiving holidays.
Last Thursdays classic reversal, well was too classic. Lack of follow thru is a very negative sign. The retesting of the floor eventual failed and the 2002 lows was breached today. This has been a vicious bear market. Divergences are failing quickly, supports are broken and the markets cannot rally for more than one day. There is no good news there out there. The only good news is at the pace we are going we should hit zero pretty soon, then we may can get a rally. We are now on track to have the worst year ever in the market history. This is all unprecedented action and doubtful anyone has experienced anything like this. Protecting capital here and you are up huge and outperforming the indexes.
This market cannot find any reason to have a follow thru day. One day wonders is all it can accomplish. C closed down 23% to new lows of $6.45. BAC fell another 14%. GE was down over 10%. Stocks with exposure to commercial real estate fell on fears of potential defaults on loans for buildings, retail stores and hotels. Trends can and seem to always last longer than we may think they will ever last. The market doesn’t care what we might think is reasonable and will almost always surprise us by continuing to trend up or down even when it seems to us that the move has already gone too far.A market that cannot follow thru after a washout reversal day indicates no one is willing to step up and bid this market up and buy stocks.
Wow, this testing of the lows is playing on peoples patience and nerves, this market needs to rally that is technically what is suppose to occur. As you may if something is suppose to occur and does not that is power sign in of itself. If we show no follow thru here we will likely go test the 2002 lows. The next few days is key.The last hour created another knew jerk reaction to a down trending day, closing the positive and retriggering the daily MACD_H bullish divergences. This continues to be mainly a day traders market and one must be sure they have a style that fits such conditions. Until this volatility simmers down, this market is a play ground for day traders.
Hello from Australia. Kerry, on a plane in the Northern hemisphere, asked me to post from here – I am at a sheep station in the depths of rural Australia. Just back from sheep shearing and just about to pick up a rifle and go for a walk. Pleease see today’s NHNL below – and also take note that SpikeTrade members are invited to a meeting in Sydney.
Another volatile week and another volatile day in the markets. The DOW traveled 1252 points today alone. With a morning selloff, then a rebound to new daily highs and in the last 30 minutes the market sold off hard into the close ending at the lows for the day. Many traders do not want to hold risk overnight much less the weekend including myself. The SP closed near supports around 875, now everyone will have the weekend to ponder if can continue up from yesterdays classic reversal. My only issue with yesterday was it looked too text booked style. We shall see if we can continue up next week.
There did not seem to be any news as a ctalyst for the reversal so this seems to be a pure technical reversal, almost too classic of an example.Now the market must show some strong upside follow thru, this does not need to be another 1 – 2 day pop! After breaking the October lows on the major indices huge buying came into the market as institutions appeared to be willing buyers. At the end of the day the DOW was up over 550 points. The range during the day for the DOW was over 911 points. You could see the intraday collapse and buyers pulled their bids as the market washed out the lows. Within about 20 minutes of the break, the largest volume spike of the day appeared and this marked the low of the day. What immediately followed was a V type bottom intraday and huge volume began to come in as the market never looked back rallying some 900 points.
It was another bad day in the markets (if you were long), with commodity and financial stocks selling off in an all day downtrend from the open. Citigroup fell below $10, GS was down over 10, GE was down over 8.5% and AXP was down over 10% at one point. GS and GE shares were both purchased at much higher levels one of the best value investors of our time, Warren Buffet. His style obviously does not use tight stops.