Quote from Spectre2007:
usually fear like this over the weekend, subsides, but what knocks a market down are the market on the open orders, not all the orders went through on the close.
so the late sellers will knock the market, but by this time, most are hedged, in options or futures. Mostly retail sells on the open on days like Monday secondary to fear.
the FED meeting is aug. 7th. so, the market will look towards the FED, before it makes another momo move. If the FED doesn't come out and say something conciliatory, the market should move down to 1360 over a period of a week or so.
Thats where the trendline is for the whole Bull move.
Goodluck Everyone, these are the best times to be in the market to be witness to forces that move prices. The psychology is the same through centuries, fear and greed. Its almost a riskfree trade when they go the extreme.
The worst part of this subprime issue is the unknown, and thats whats killing the market, lack of transparency. Fear of the unknown. Prices can never get too cheap or too expensive when these conditions persist. The only thing that abates the momentum is when the fear and greed levels subside. Keep an eye on the VIX, and other markets to assess fear.
I wont be posting anymore, these are exciting times to be in.
Goodluck,
Chris
