Online Stock Trading | The Stock Market Falls Apart, Another Black Monday

The Stock Market Falls Apart, Another Black Monday


Filed Under Market Psychology | 2 Comments

Small Caps get hit as the Russell 2000 gets whacked nearly 12% as stocks can not find any footing.

There is not one single silver lining to this market.  It is clear the path of least resistance is down and will remain so for the foreseable future.  Too many are looking for the market to bottom and rally higher.   The holiday wedging rally (rally on ligher and lighter volume) was the sign that the market was simply bouncing due to oversold conditions.  We have not seen the bottom and may not see one for quite some time.  Even though this may appear bleak what it will do is remove the excess from the system.  We have had too easy of a time gain access to credit and over leveraging oursevles.  This is coming undone and why we are seeing such dramatic moves in the market.  Look for more downside and the deleveraging process to continue.

The best thing for my trading style is to simply sit on the sidelines with cash and wait for an opportunity to get long.  Now isn’t the time, but at some point there will be a time.  For now, I am staying patient.

Best

MS

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2 Responses to “The Stock Market Falls Apart, Another Black Monday”

  1. The Stock Market Falls Apart, Another Black Monday : Monster Stock Trader on December 2nd, 2008 3:05 am

    [...] The Stock Market Falls Apart, Another Black Monday Share and Enjoy: [...]

  2. » The Stock Market Falls Apart, Another Black Monday | Market Speculator » Stock Market Investing on December 2nd, 2008 8:46 am

    [...] market news by unknown « StockGEEK.net: The 1929 stock market crash InvestTalk Podcast & Blog » [...]

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