No Worry; but Hope Remains Strong
Filed Under Market Commentary |
6:30am EST Stocks slid on a flurry of news; stocks whipsawed and sold off in the final hour of trading.
Stocks showed a glimmer of hope yesterday with showing some GREEN. It wasn’t until the final hour when big institutions operate that stocks began to slide back into distribution territory. The day ended as a distribution day, but stocks did show signs that traders are more than willing to catch falling knives.
Many market participants are showing the emotion of “HOPE.” What is happening here, the VIX so happens to be portraying this perfectly is traders are hoping for the FOMC to cut rates and that will spring stocks back into bull mode. This does not signal a bottom, it may be signaling we are headed for a bounce. However, we have not put in a significant bottom in this market just yet.
MER reports out this morning, it will be important to see if MER has anymore surprises regarding subprime mortgages. If it does, look for GS and LEH to crack wide open.
Enjoy and happy trading
Market Speculator
Last 5 posts in Market Commentary
- The Stock Market Battle - November 19th, 2008
- Stocks Rocket Off Multi-Year Lows - November 14th, 2008
- The Stock Market is Lacking Leadership - November 10th, 2008
- Stocks Crumble; Investors Look Ahead to an Obama Presidency - November 6th, 2008
- The Stock Market Awaits Election Results - November 4th, 2008
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