19-Nov

Another breach of the lows!

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.

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