Wednesday, August 29, 2007

What a surprise !



The markets did a complete about face today, performing absolutely the inverse of yesterday. Buying started strong out of the gate and never wavered for the rest of the day, closing just pennies off the high. It will be interesting to see if the market can hold at this level and avoid the curse of Thursday, which has been up only once in the last 10 years.
The Qs almost retraced losses for the previous 2 days and are poised back at the 50 DSMA and intermediate resistance and ready to launch a pre Labor Day assault on the 49th parallel again.
The VIX had another 10% day, accomplishing an abrupt reversal and closing at the MACD zero line once again.
We've got some news tomorrow, and that will doubtless provide the catalyst or damper for further market progress, although the more I look at market internals, the less I believe in event driven market performance and the more I believe in market manipulation. More on this over the weekend. Until then, the portfolio is now 85% net long.

2 comments:

Robert said...

You talk about the curse of Thursday saying that Thursdays have been up only once in the last 10yrs. Can you explain what you mean - I see plenty of examples of an upmarket on a Thursday in the QQQQs and the Vix...Thanks

bzbtrader said...

The comment relates to the Thursday prior to Labor Day as was mentioned in my Friday the 24th post.