The Dow has seen already today a 200 point trading range, with the 10000 level being the top and just a few minutes ago, with DJZ trading down to the 9800 level…Talk of a dollar Short squeeze has fueled this action today, with Crude oil trading around the 78 dollar mark when only last week it was at 82 and change, with people, myself included, looking for 90 dollar a barrel oil just in time for Thanksgiving driving weekend…
It just goes to show that often times people’s opinions are well worth fading in the short term… Longer term, and by longer term I mean 6 months to a year, there is enough time for the fluctuations to smooth out… In the mean time, if you are short the dollar and taking the pipe on the position, simply b/c you think in a year you will be right, then my advice is to put your stop in and go find something else to look at other than the cable news shows…On a day to day basis, its any one’s opinion as to how the market will move…
Today if you look at these charts, you can see that a lot of bulls are getting their heads handed to them.. Once they have puked their positions and re-evaluated, no doubt there will be a re-coil bounce, typically about ten seconds after the last long has thrown in the towel on their position…
Its a sadistic fact of how markets move…
Good Trading