Monday, October 20, 2008

An Encouraging Day

It looks like we are seeing the kind of "no news" rally that I mentioned two weeks ago in this post. It appears to have started from the October 16 low at 865. I think this phase will continue up to 1080. 

The late break last Friday faked me out and the move above the 970 level this afternoon means that we should now see a series of bullish days until the 1080 level is reached. I still think the odds are better than even that the 837 low of October 10 will hold, but even if it doesn't I think it will prove to be close to the ultimate low.

I also believe that 12 months from now current prices levels will look low by comparison.
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3 comments:

  1. Anonymous10/20/2008 05:15:00 PM

    carl,

    we did have some news as you know Bernanke and bush acknowledegedthat they are going to put out a second bail out plan.

    ReplyDelete
  2. Anonymous10/20/2008 07:28:00 PM

    What makes you think that today wasn't the 'fake-out'?

    ES only managed to climb above 982 in the last 5 minutes ... how many 'real' trades were put on during this 'window dressing' period?

    ReplyDelete
  3. Narayana10/20/2008 07:55:00 PM

    Carl, you always talk about the importance of Volume to confirm a move. Today's volume was pretty pathetic for the percentage gain. Doesn't that imply a rally without enough umph?

    ReplyDelete