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Friday, October 24, 2008

Highway To Hell

We got off to a very shaky start this morning, but things did not come unglued as buyers came in to fade the morning gap. The wedge formation (better seen on an hourly chart) is decisively broken, but we managed not to break the October 10 low. Energy, the strong sector yesterday, was the weak sector today. The only decent strength came from health care.

The Nasdaq gapped below the October 10 low, killing IBD's confirmed rally. We did get a nice move up as the morning panic subsided and buyers came in.

The Russell 2000 also undercut. The buying here was a little underwhelming. The market was paniced this morning over a severe recession. I think we will consider ourselves lucky if all we have is a severe recession.

It was gold and silver miner's turn to have strength today. I have no idea how you can anticipate this, one day it's weak, the next strong, no real reason for it. You have to be lucky to catch moves like this, and I don't like to rely on luck.

The Vix reach another new high today. VIX readings in the 50's now seem pretty sedate. Nobody trusts the market. Index ETF's are making daily moves that were undreamed of just a couple of months ago.

The yield on the 20 year treasury. You can see how disrupted the orderly progression of the market became in the middle of September.

The market is at a point where it could do just about anything. I had a small SSO position which I was going to let run, but took it off today, and am back to 100% cash.

BOLT reported today, and dropped about 28%. Hopefully I will have a fully updated sheet ready this weekend. There was nothing of any interest, other than charts I have already posted, so there won't be any individual charts today.

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