They Didn’t Get the Memo
October 28th, 2008 at 10:08am · 10 Comments
The U.S. stock market doesn’t seem to have gotten the memo that ‘Turnaround Tueday” was to have been a world wide reversal in stocks. The Asian markets led by Hong Kong reversed nicely as did Europe led by the DAX and that bizarre short-squeeze in Volkswagen shares. But the eMini futures seem only capable of significant rallies in the overnight hours, when presumably the sellers are sleeping. As a positive, every move down into the 835-825 area this month has been met with real buying. The market appears to be defining that price area as the low end of a new range.
I remain convinced that the climax in the herding of fear and panic behavior is past. But the necessary deleveraging of portfolios continues, and to the extent those are automatic computer-driven decisions, stocks can go down regardless of any improvements in investor’s mood. “Turnaround Tuesday” isn’t over yet. Let’s give it the full day to play out.
click chart to enlarge
Tags: Day Trade · S&P 500
10 responses so far ↓
1 muellerjoerg // Oct 28, 2008 at 12:46 pm
Thanks for keeping us informed, Chris. It is really helpful in this crazy time.
Joe
2 humble1 // Oct 28, 2008 at 2:40 pm
looks like they finally got it.
3 Jon Eeles // Oct 28, 2008 at 3:08 pm
A fantastic call Chris. A stunning affirmation of your work.
4 mtrevillian // Oct 28, 2008 at 3:27 pm
Great call, Chris. Congratulations.
5 Jrock // Oct 28, 2008 at 3:33 pm
I started trading back in December last year mostly as a hobby. A buddy of mine dabbles in techincal anaylsis and was always mentioning your work. I was very skeptical being new to this whole thing, yet fascinated by the concepts. After making some very good calls the past few months (most memorably the oil bubble breaking) I decided to put your work into practice with the Autumn Panic dates. Suffice to say I just made my first donation today…
6 NickG // Oct 28, 2008 at 3:44 pm
I think they got the memo now Chris. Great call. Very useful work, many thanks. Bear market might not be over but the time for a panic seems to be past. Congratulations. Nick
7 jay mann // Oct 28, 2008 at 3:54 pm
Splendid call mate! Well done Chris
8 humble1 // Oct 28, 2008 at 4:11 pm
the weird thing is how few people really think about or understand the importance of this kind of timing. even with an impressive hit like this, i don’t think many will pay much attention.
but, that’s all for the best!
9 alexk // Oct 28, 2008 at 4:45 pm
Thank you for the level-headed comments over the past few days. It is one thing to anticipate a turning point, it is quite another to keep composed and objective while it happens!
10 deacon31 // Oct 29, 2008 at 8:15 am
exceedingly abundantly congrats!!
…USO sets an island bottom today, much like the island top that set up the last drop for crude oil…10/28 was option expiration for unleaded gas, GC SI HG
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