Tuesday, January 22, 2008

FED blinked, but who capitulated?

My gut feeling is that bears, more than bulls, capitulated today, and I suspect that both camps are probably feeling that they are the ones who got screwed by the FED. Market is trying to put down a bottom here like it did in Aug'2007, but such bottom requires at least one follow-through day within next 3-5 days as confirmation. With AAPL down over 10% in AH on earning warning, the odds are not good for bulls to have a follow-through day tomorrow.

I am all in cash now, feeling dizzy and and a bit lost at the moment. To be a bull, or not to be a bull, this is the question!

2 comments:

Yuriy said...

Well it looks like today will close green. Confirmation or speculation?
What are your thoughts for tomorrow?

flyingwabbit said...

hmm, it does look like a capitulation day as volumes really jumped. should be at least a couple of up days ahead.