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Friday, February 20, 2009

Interesting Times

My "no trades in the first half hour" rule paid off again today, as I was tempted to fade the gap and catch the rally back up, but the rally fizzled after half an hour. The market came under pretty severe pressure just about lunchtime (as I found out later, thanks to Idiot of the Week winner Senator Dodd), and we came within 4 point of 750. Apparently, reassuring words from the White House calmed things down, and we had a decent finish into the close, although still negative. The financials, especially BAC and C, were a daytrader's dream today, swinging wildly all day.

The Nasdaq, by comparison, was a bit sedate. The Nasdaq 100 finished positve on the day, and the composite came awfully close.

The Russell 2000 has now broken the early January low, but got a decent reversal. The Russell has seriously weakened, if it can't find support somewhere up here, it's a long way down to the November lows, and the momentum is definitely downward.

The financials SPDR, making dramatic moves all day. This was leading the market down early, and staged a huge reversal, probably thanks to shorts covering. Next support level is 0.



Here is the intrady dollar index. The yellow highlight is right around noon, which is apparently when the Dodd statement hit the news.

Today was options ex day, but that doesn't explain the strange behavior and just the darn uncomfortable feeling I have with this market. It just seems that the market is rapidly losing confidence in our leadership.

I will have the new highs update shortly.

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