Today was shaping up for another brutal day in the markets. After the initial open where the markets dipped down in an extreme fashion, they managed to recover a chunk of those losses before latewr giving much of it all back. But then something very curious began happening, and we started to see volume and strength pour into the markets and actually rally 3-4% in broader markets, and while the market ultimately gave up much of those gains, and finished down for the day (except for the Nasdaq), the losses were comparatively small in comparison to what we saw this whole week.
So where does that leave the general markets? Not sure at this point, nor can anyone know for sure if any type of bottom has been put into this market and we’re not going to try and make that call. Have you seen where it has gotten Cramer this year making all of those ridiculous calls? He called a bottom in JULY! A little off wouldn’t you say? A couple of months ago, a friend got an email from GorillaTrades saying they expected the Dow to finish somewhere around 14,650! We are almost at half that – in fact we were there Friday morning before the subsequent rebound in the market (we’ll publish the letter in full real soon – it is astounding the predictions these companies will make – and that email was sent on August 2, 2008).
No, we refuse to call a bottom – it doesn’t do our readers any good to make foolish predictions. Yes, it is good for publicity’s sake and trying to get more subscribers, but we’re here to be open and honest, and we don’t know if this market has bottomed nor will we till we see some better action out of this market – and frankly one day doesn’t do it for us. But we do know this – we will tighten our stop-losses on our short positions, and if the market continues to rally, we will take our losses and get out of there.
Have a good weekend – and take the time to do something with the family.
Here’s the Nasdaq and S&P Charts (is that a green candle on the Nasdaq!?!)…