October 28, 2008

Market Review and Commentary for October 28, 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 advanced 889 points today. Is it going to fizzle out like we did a few days ago when we went up 963 points?

WATCH TODAY’S VIDEO

It was also interesting that for being up 889 points the VIX hardly moved:

It went down but did not break the rising trendline. A pullback in the market will give us a good indication that the VIX is heading lower or not.

As I mentioned in today’s email update I went long SMH, URE and UYG. I closed most of my positions at the close of trading for healthy profits. Overnight risk could still be excessive until we get confirmation this is a sustainable rally.

PS- In the video I mention Volkswagen but could not find the chart.
You can click here to view the chart I was referencing.

Trade With Confidence