Friday, May 14, 2010
From Expectation to Disappointment
The emotions should change from expectation of more European bailout goodies to disappointment come Monday morning. That furious rally in the last 20 minutes of trade can be attributed almost exclusively to expectations of possible European "positive" news. I even heard on CNBC that selloffs on Fridays have led to Monday rallies. You know the pattern is known to all traders when CNBC catches on. I am expecting a gap down for Monday.
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4 comments:
Unless we get good news over the weekend, I expect a gap down too.
As always ... does the chart create the news or the news the chart. I go for the first option - US media totally over exaggerates Euro economy to find a reason for the sell offs. Imho this is all about consolidation and it's been time - the markets have been rising for 14 months or so and there was never a severe correction. It's due for a long time ! Jammy.
Good point, the market was due for a correction and Euro troubles are as good as excuse as you can find. Those troubles have been around for months and were ignored before last week.
Yo I got long DRV at 6.01 on Wednesday towards the close and sold it at 6.91 today at 11 am PST. Not bad for two days of trading. I liked it because I timed the market. It's much easier to time this market to the short side now that the notion of the teflon bull is defunct.
How did you make out the last 2 weeks. Hope you made some money. I got killed on my other longs getting into this. It's going to be tough till the market gets one sided again.
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