July 25, 2008
A quiet day for the most part, though the NASDAQ was able to put together some respectable gains after what has been a solid week of earnings for companies in the index. The Dow and S&P saw a continuous decline for the day after opening up relatively strong.
If the only bounce that the market gets out of the S&P is an intra-day bounce that is sold off before the market’s close, then what we have is a market that continues to be dominated by the bears and unwilling to give this market a reprieve whatsoever. But at this point we can’t say for sure that that is what has happened based on today’s action. Instead we will watch for price action on Monday and Tuesday to see if the bounce is delayed until then or if today is just a breather for the bulls, before the markets continue their selling next week. At this point it is inconclusive.
On Friday, we added another short position to our portfolio and will look to add another on Monday on any strength that the market gives us.
Here’s the NASDAQ and S&P Charts…