Out of town and charts

Posted by downtowntrader | 9/25/2008 08:52:00 PM | 0 comments »

I haven't been able to post any charts the past couple of days due to a sudden Business trip I had to take. I'm not sure it would of made a difference however, as it's been slim pickin's recently. The markets seem to be transfixed on every word that comes out on the "Bailout package" and therefore trading has been very choppy from one day to the next. I wrote last week of how I was thinking we might get a lower volume pullback and retest of the potential low, and stepping back and looking at the charts, that might be what is coming to fruition. The question is was today the beginning of a rally, or just an up day within a move lower.

It looks like all the after market news today is negative. RIMM was crushed after releasing their earnings report. It looks like WAMU is being seized by the FDIC tomorrow. There is also "breaking news" that the proposed bailout is falling apart. There is a chance that tomorrow starts off with a large gap lower setting up a possible retest of the recent lows. How it reacts will be key, and interestingly enough, the government is in a situation where they could be the ones to step in yet again and manufacture a low by sealing the deal. Now is not the time to be taking large bets for short time frame trades. I am still trying to position myself for a rally, but I don't feel the urge to get greedy and bet the farm. If we get a rally, it should last a while and provide plenty of chances to hop on.

Good Trading,