Friday, October 31, 2008

The Market is Irrational

The market did hold up yesterday, with a Dow top at 9306, and a low of 8937. Economic indicators showed some positives yesterday, just enough to keep the market slightly buoyant. I don't trust it, and remain convinced we'll have a downturn, just as soon as the "euphoria" builds and more and more say that the "market is now turning around."

The election will stir the pot, and provide a possible strong upside. It is likely we could have downturn prior to upside around the election, and we now hold an OTM November put and are making a recommendation for a December put, which we'll hold as a part of a straddle.

The count is skewed. I find it irrational, as I find the upward moves too hesitant on volume to show true confirmation. All but 4 of the top 30 blue chips advanced, and it is very possible for a stronger upside. No news is really good. The world economy has not improved.

Watch the following video; Suze Orman discusses the upcoming credit card crisis - http://www.msnbc.msn.com/id/21134540/vp/27452795#27452795

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