Market Seesaws Back from Down 250
The Dow has worked its way back up from being down over 200 points for most of the day. As I write this, it has just dropped 50 points in 5 mins. Volatility seems to be spiking upward everyday as we are seeing plenty of triple digit moves this week. In fact, this week along has seen the Dow move triple digits almost every day. Monday was a 200 down day, followed by a reversal on Tuesday for the exact same distance, another 200 down on Wed, with an up and down move Thurs that ended up in a plus 80 point day for the blue chip index.
Today remains to be seen where it will settle, but some serious short covering is in the works. The market recovered 150 points in 30 minutes between 2:35 EST and 3:05 EST. Its anybody’s guess where the markets close today, but I believe we are nearing a very important level for the market where buying, short covering, selling are all colliding to generate the frenzy that we are seeing. You have to be extremely brave to trade in this market – me I am just enjoying the show and looking forward to 6 months out when most of this will be behind us.
I did buy a little Priceline today (PCLN) but more on that later.
–Faisal Laljee
Full Disclosure: I am net long in the market but my stand can change anytime without notice.
