Friday, October 10, 2008

Bounce, Crash, Bounce, Crash...

The markets just opened sharply lower and broke the 8,000 point level that I mentioned last night. Breaking 8,000 triggered a substantial number of program trades that flooded the market and rallied the market sharply.

As I've said everyone is trying to pick that v-bottom. I think this is flawed thinking and doomed to end up costing investors in the long-run. I'm not convinced that this can hold, because I'm not sure anyone will want to hold stocks over the weekend.

That said, there is a possibility of another substantial coordinated financial action when the G-7 meet.

As a friend said last night "May you live in interesting times." Look for hourly updates today.


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