Thursday Note

As I predicted in my yesterday's note, the market is yet to find a true short-term bottom. I made a quick short on AAPL in the early going this morning as the market gapped up in the open.

Right now all major indicies have solidly broken yesterday and Aug'07 lows except QQQQ. The thing that puzzles me a bit here is I see no volume spikes as new lows being made. I have eyes on some buy-at-bottom long setups, but I will hold my trigger tight until I see clear capitulation on the bulls part. For those who are really risk-averse, I recommend that you don't act on any intra-day rally, rather, you enter the long setups in the closing minutes ONLY when you at least have a bullish engulfing candle to back you up.