Sunday, September 16, 2007

Entry for July 25, 2007

It is hard to be anything but a bear right now, all things considering the huge sell off in the equity indicies accompanied by the huge spikes in volume. All things considered, i do not think this to be a full fledged reversal. People were waiting for the dow to hit 14,000 and start shorting, i believe short covering shall take affect around the 1490's on the s&p 500, though the dow has slightly a little more room to fall before hitting support. A couple of lower highs, and we will be back on the bull wagon. Though the technical evidence compells me to say otherwise. If i do not see volume decreasing significantly to support my latter thesis, i would only have the choice to be bearish. A lot of bad news sited in the media are only temporary movers, though like i said before, housing should have been no surprise, but it is only natural that it is. Self full filling prophecies seem to be what everyones is into these days... \

The bond markets seem to be finally hitting a one way trend. For what reason are people buying into bonds now. The inversion of the yield curve would have been more significant, if it hadn't been inverted for so long prior to this one. Fear of Fed cuts, bearish market sentiment, poor economy news reports, bode well for the bond market. I had not expected it to drop this much, apparently, there are greater forces at work that i must discern before commenting further.

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Wednesday July 25, 2007 - 01:56pm (EDT) Edit | Delete | Permanent Link | 0 Comments

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