October 27, 2008

Market Review and Commentary for October 27, 2008

DISCLAIMER: These are trades I am doing and may not be right for
you. Use your own Due Diligence when making financial decisions of
your own choosing. This is NOT a recommendation of any security.
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The DOW lost another 200 points today. As I mentioned in the videos for the past few days the market looked weak and it continues to look weak.

The way we are grinding lower we may still get to 7400-7200 which is my target without a large one day move – we could just move lower by a few hundred points each day until we hit it! Of course I’d rather get it all done in one day – that would make my buying triggers get hit faster, but the market moves as it wants and cares less about my plans!

Here’s how the market looked after today’s close:

So we dropped 300 on Friday and another 200 today – that’s 500 points in 2 days and it feels ‘ok’ becuase most market participants have gotten used to triple digit drops… “200 is the new 20″ they’ve been saying on CNBC.

Also the VIX looks ready to pop higher into new territory:

If you didn’t watch my video on Sunday the 26th – do it now. Nothing has changed except this: I’m slightly concerned about the LOW VOLUME of today’s decline. If real buyers with money come in force into this market it could turn on a dime and head higher fast…

UPDATE BUY LIST: I have added UWM and SMH to my “Buy” list (ONLY if my target of 7200 is hit on the DOW)…

There’s no video today.

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