The chopfest in this market continues. I assume a lot of fingers and toes are being cut off by the action the past few weeks. Yesterday the market went out on the highs, as poor economic news was forgotten and bailouts cheered. The S&P 500 sat above key resistance areas. Cowered bears thought “here we go again, another V shaped bounce”. Today, everything has been reversed… and some. The 50 day moving average held up the market all morning, but just broke. Amazingly the 10 year bond is at 3% – equity investors don’t seem to be asking why the flight into bonds the past 6-7 weeks. Normally this indicates economic SLOWDOWN ahead.
You have to be extremely fast on your trades in the current market, because they reverse very quickly.