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C

Cutten

Looks like a possible reversal day today - the market leaders are getting hard. Since we've had a large rally, and vol is low, and we had just taken out the prior highs by 1-2%, I think we may have just seen a short-term top. There is definite potential for 50-75 points downside to near 1500 IMO. Safest to play it with some puts or put spreads.
 
nah reminds me of the hangseng 2.5% intraday reversal two weeks ago

it recoved as if nothing hapenend

Just profit taking

There will be no continuation selling. All short profits will be made today.
 
Maybe, hence I wouldn't go naked short. But this kind of action is a sign that the risk of correction has increased noticeably. Picking up some cheap puts, booking some profits, and tightening stops on long positions would be a good idea IMO.
 
Quote from craneman:

Too many people calling a top right now for a top to actually be here imho.
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Hey, I called yesterday, is that better? :)
 
Quote from reno4nook:

too much seasonality ahead not to go higher.

markets always go up around Thanksgiving...
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Thanksgiving is a clean 1 month+ away chief. How long did it take the market to correct in early August?? :p :p

~Cx
 
Quote from Cutten:

I think we may have just seen a short-term top. There is definite potential for 50-75 points downside to near 1500 IMO.
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What's your definition of a Short-term top? How many days or weeks.?

Markets did not close below the prior day's low however, so, a down day reversal from a technical standpoint isn't in.

Generally speaking, I expect the end of October, or, early November to begin a more significant downside risk. But what do I know.
 
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