Tuesday, September 23, 2008

Lets wait and see

Another huge sell off and we are back to where we were on thursday. Definitly another move I did not expect. Volume was fairly low yesterday (in comparison). VIX is still above the 30 range, the first time in our crisis it has held 30+ for more then 5 days.

We should see a continuation of our strong moves into different directions. Watch the 1200 today for support but overall this entire market is fear driven and any type of news whether its positive or negative will show overreaction.

Time and Price
As you can see my predictions have not been very accurate as of late due to the volatility. Technical analysis is a great tool to be able to forecast direction but due to the current market sentiment forecasts and price points are not inline.

1200 - major support from our july lows should play a role today
<1200 - anything goes here

Thats it for today. I am staying on the sidelines for the next few days. I have incurred quite a few losses the past week. One of the biggest problems is that during times like this I need to be watching the markets every minute and due to work I am unable to do so. Going to wait it out for a bit and leave my cash in the bank.

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