Market Diary 1-8-08
Prices bounce at support—except when they don’t. This is the lesson of today’s market panic.
The market was actually moving pretty normally until about 2:30 EST, when the CEO of AT&T said that some of its business lines were softening. Then it was straight down from 12,850 to a close of 12,589. This shatters support across the board, which means that technical traders will soon be trading short, increasing selling pressure. We should still get some sort of rally over the next few days, but I’m not expecting much. If we get a tiny rally that crawls up to that 12,750 line and can’t break it, then was have an excellent technical setup to go bearish.
DISCLAIMER: Do not invest any money in the stock market, ever. If you do, you will lose it all, and you’ll spend your retirement years under an overpass holding a cardboard sign.
I like the disclaimer
Back in the dot.com boom I took $1000 over to etrade and bought a couple of stocks I believed in. 3 months later, i was feeling pretty smart with my holdings worth $1600.
9 months after that I cashed it all in and closed the account for a lousy $80.00
Comment by Marty — January 9, 2008 @ 11:40 am
Marty,
What kind of system did you use?
Comment by BenBateman — January 9, 2008 @ 11:31 pm