Very interesting price response post-fed. I think it's overblown.
Chances are the market will bottom sometime around 11:00am (EST) and the wallow down there, and then slowly climb back up and the Nasdaq should close 20 points up.
The reason is because everybody is thinking that "crap, it's off to the short races again", and they'll load up short in the morning.. but they'll exhaust themselves, and the longs will squeeze them out, and we'll see another up day on Thursday (SEC certifications, most companies will be clean), and Friday (options expiration, which are currently loaded towards the put side.. these must expire, so prices must rise).
After this week, the markets will collapse next week. After all, people will see the charts for Thursday and Friday, and assume everything is all safe for the new bull market, and buy heavy on Monday. Whatever. This'll probably be another opportunity to short heavy for the next 25% downleg.
Expect to see the S&P 500 at around 700, and the Nasdaq at about 1000 by the end of October. It'll be rather ironic, but we might see the S&P 500 at 500 by the end of this year. If you must play this long, buy 30-year US treasuries.
New orders:
If ET and the 30 units of MDY have not been sold per previous orders by the end of Friday, dump them at market at the end of Friday. |
