Rolling over?
    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.
More on this topic
(What's this?)
The Santa Claus Rally
(The Curious Investor, 12/22/07)
Dow Jones ($INDU) Chart with %R Indicator - December 7, 2007
(My Trader's Journal, 12/9/07)
Dow Jones 10 Year Chart - December 19, 2008
(My Trader's Journal, 12/21/08)
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Posted by Sean Hannon on December 12, 2007 at 12:43 pm --
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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.
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/
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.
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.
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