Rolling over?
Posted on Wed 12th Dec, 2007 12:43:07 PM
    After Tuesday’s post-Fed sell off, the DJIA closed on top of its 10 day moving average and a shade above key support levels. Such dramatic action causes today to be of great importance. A strong rally would indicate that Tuesday’s sell-off was overdone while a break lower would signify a bearish reversal.
    At the open, it appeared the bounce was in place. Now I am not so certain. As the markets retreat, we are losing ground rapidly. This is setting up to be a dramatic last hour of the day. As the smart money enters, the battle will intensify. My guess? The bears resume control of this market and break the bulls.
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The markets opened gapped right at resistance from the 50 day moving average. I think the sell off yesterday was the start of the new trend that will continue well into 2008. I don’t care if you have a $40 billion dollar program setup, the mess is only going to get messier before it gets cleaner.
Blain you are stealing my notes!
Seriously man, set up a futures account. This type of trend happens once every 3-5 years. Fortunes can be made if a little risk is taken.
Good article men I like it. Thanks for it.
luckily i actually had a pretty solid day
Wild day… up 275 pts, then down 100 pts, then back up, back down… some serious whipsaws. It’s gotta be tough being a daytrader in these conditions. Unless you’re Jack apparently
I aggree and think that this rate cut will only cause more weakness (think falling USD). Read my article titled: Than Banking System Is Worse Than Expected & Fed Gives Another Rate Cut here: http://www.nabloid.com/the-banking-system-is-worse-than-expected-fed-gives-another-rate-cut/
The USD falls by 60% every 5 years? I think the problems being faced now are a little different than problems in the past 5 to 10. I’m not saying there aren’t areas to profit, but I’d be carefuly about taking on risk based on the way a chart played out in the past 5 to 10 years. History can certainly be (and often is) repeated and there are trends that occur – just be careful is all I’m saying. If you do it right though, you could make a lot of money – but you risk losing a lot – things may get a lot worse before they get better. I guess anyone trading futures already knows its extremely risky.