On Tuesday the rise in the market was on high volume, and clearly a turnaround opportunity. Yesterday the market moved to Dow bottoms again, on rising oil and analysts predicting doom and gloom for Cisco and Intel.
These are the same analysts that brought us subslime debt, and massive hedge fund loss.
FEAR permeates the market.
Two way trades will still be likely, and we continue to see a healthy topping to the market, before another sell off begins.
Oil is now the catalyst. Many traders have written about "traders controlling pricing." There is right now a very adequate supply of oil. A simpleton would know this, as no gas stations are out of oil, and there is no rationing. Thusly, there is plenty of supply, short term.
This is a classically manipulated trader commodity oil market, on FEAR. But, the facts are even more disturbing:
Check this video to gain a different perspective:
http://pickensplan.com/
With a count of 6 to put it is now likely for more downside before upside, but we believe a recovery is in process.
Calls were tightly profitable yesterday ONLY for traders moving in/out and taking tight profits. Volume on the exchanges was very light, after a very high volume UP day the day before. Chartists would see this as a potential bottoming of the market.
Any trade we recommend and that you make...take tight profits. Do not anticipate anything, as in a market like this it is impossible to anticipate.
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