Alerts & Commentary
9/15 – Market Commentary
Ouch…
The S&P made a new low for 2008, and all were down on bigger volume than any day since January. All this talk about capitulation is premature, at least in our opinion, since all the markets started weak and got worse throughout the day, closing at or near the lows.
Capitulation usually includes a huge spike downward followed by a reversal back to the upside… See 1/22 & 23, 3/17 and 7/15/2008. Those were capitulation days. Today is very scary though the FED may step in and cut rates, which could probably cause a ST rally back up into resistance.
The news is clearly that financials are in deep, deep trouble… BSC, FNM, FRE, LEH Bankruptcy today and AIG in serious trouble. It is very ugly out there. Keep your powder dry for now and watch the carnage.
We had to hedge several positions further today and will update those later, or early tomorrow. Of course it’s expiration week… LOL. What else would it be… ;-)
Coach BD
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