Look out below, but also look out above.
We had a Januari effect, not where most people were expecting.
Large beaten down companies had their up-day: WCOM, T, SBC even semis AMD, TSM.
Techs have been sold, and as posted yesterday, I expect some more margin calls today.
Futures at 2130 are 28pts below fv, indicating another down opening.
The trend is your friend, yes, but watch out: when everybody will be done with selling and installed in short positions, remember that supply and demand rules.
Hope for the Fed to cut rates, indexes nearing support, we could be in for a bounce by Fri or begin next week.
I still am bearish middle-term, not expecting a strong base to be set for a rally before end of Q2. Meanwhile, rallies can occur. As corrections happen in an up-phase. Look at the charts in a mirror. |
