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Quick Comments: From Daily Decision-Stock Trader Editor Richard Meiers
Down two percent seems to be about right. That’s about how much futures are down and is the plus minus line for most major global exchanges.
Where Wall Street computers take stocks from there is a flip of the coin, and to be an effective trader, you have to trade your beliefs. Right now, I am not sure what to believe.
One expectation which I think is a certainty for the next few days is high volatility. Riding big swings up and down is nauseating and tries the nerves. That type of environment might work well for scalpers, but that’s not our gig. So, today we are going to remain in cash to start the day.
To rebuild the foundation of belief, I am looking to see if Friday’s intra-day bottoms hold? I am also watching to see if the NASDAQ closes above 2500, the Dow above 11,000 and the S&P above 1175. There is clear support on the charts at those levels. The NASDAQ and S&P will open around those levels and the Dow about 100 points higher.
If support manages to hold, they might make good entry points before the close - in anticipation of a possible pop tomorrow morning. In addition, the FOMC meeting announcement will be tomorrow afternoon. Everybody will be paying attention to see what Ben Bernanke has in store to prop “asset prices” back up.
S&P 500 - Last 12 Month
All the Best,
Richard Meiers.
Editor Daily Decision-Stock Trader
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