Wednesday, September 24, 2008

Are we done? Some think we are ...

Another huge sell off yesterday. Monday and tuesday combined experienced the largest drop on the S&P in 6 years. This is staggering. Considering what happened last week and what we are going through at the moment - speechless. VIX still having a good time above 30.

Anyone that followed the news yesterday would have been able to forsee the drop at the end of the day. Lawmakers were meeting yesterday trying to determine to what extend to implement the Paulson plan and let me tell you - it did not go well. I am sure they will try to do the right thing as the times we are in require drastic measures.

Thanks to Mr Buffett we should see quite an up day today. After pumping $5 billion into Goldman and Goldman offering more shares I assume many other banks will use the short window as well to issue new stock to get better capitalized.

Time and Price
Same as yesterday I am not going to post many ranges today. The low of yesterday happened to be the same 1187 I posted previously - so price points work out but the range is too wide and will continue to be wide.

1213/1221 - break here is needed
1200/1205 - important range in trading yesterday
1187 open/close
previous lows

Today can play out 2 ways. Most likly scenario is a nice rally that will hold on to its gains. If we are to sell off below the 1200 range today the retest of lows will be inevitable. Congress needs to act fast or we could see new lows this week.

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