A big reason for my very bullish call two weeks ago was due to the assumption that the FED would be a lot more friendly than this. This is a very stingy/tight FED and they seem like "happy people" and "hopeful people" like Cramer said on CNBC after the FEd meeting last week. Alan Greenspan thinks that the FED should let the 'sub prime slime' work it's way out of the system and allow the mrkt to be the mrkt. I do agree somewhat with this view but in this scenario we are clearly headed much much lower. Unless the FED intervenes, i can see this mrkt heading a lot lower in time. Look at the charts and they tell the story. Bear market like selling again, just like we saw 1 month ago.
Let's watch these charts over the next few days and see how they develop. I'll be watching the VIX very closely the next few days and see if it can take out that bull flag. If it does, then watch out below and bring in the fireworks!! The next two weeks will surely be very interesting. Be very careful trying to chase longs and shorts for that matter in this market. I highly recommend you reduce share size. I am back into day trading mode and there should be plenty of intra day volatility to make me happy. No trades for me today.
Good Luck and trade smart!
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