I tell ya, if Monday's down these days then Tuesday has been GOLDEN to follow that rule! We gapped up HEAVY and then pulled in a bit after FOMC, but then just went hog wild and closed at HOD.
I suspect we now get those targets I discussed recently and thought we'd see - Russell 735 range and S & P 1325 area.
We'll see, but as you all know, either way we will head lower. It's interesting, we have this COMPLETELY psychotic market now. This isnt volatility, this is insanity. No ryhme, no reason, we just get this NUT market! I mean, Monday they selling financials with both fists, then on no news we gap up BIG in that group and never look back. NO NEWS!
Yes, we've had a volatile market for quite a while, which as a trader is great, but jeez louise, this is beyond volatile, this is downright looney bin material!
Wednesday maybe we'll get a simple day, some follow through to the huge rally. I think that would promote the move we're discussing pretty quickly, and it makes sense in terms of Bear Market rallies. They keep happening all in a day or two or three period. That's normal behavior for a bear market. Normal behavior for a Bull market would be a slower more push and pull move higher.
BUT< as always, its all good and all tradeable! I just refuse to make strong day to day calls, cause no shot to do that most days here. We defy all logic, so better to trade it intraday and swinging stuff for a few days or a week or two at a time. Overnight? CSCO was up nearly 7% after hours and you would expect he market to rally again Wednesday, but since this is a looney market, who the hell knows at this point.
WFMI nice, got cracked as we knew it would! Down $4 after hours! Ka-chingo for Option Traders!
I think WFMI is $3 to $4 by years end. For Options Traders I would take some money off the table and keep a few puts with a stop at $21 on the stock and we'll reenter if need be. I doubt it gets that much of a bounce, but we shall see!