General Markets - Oct 23, 2008

I don't have enough time for post full of charts, so words will be. It was not pretty yesterday. Breadth was negative, volume was heavy. On NYSE, more than 400 stocks made a new low. Gold was creamed, and bonds are back in vogue.

And, of course, the media was having a fun day parading econo-bearish guests.

Despite all that, just looking at the charts, it was another test of the low in many markets and we don't know if they will hold or not. It does not look good, but looks can be deceiving and I just can't say at this point.

On S&P, short term oscillators are getting oversold and are yet to show signs of turning. Many are in either a crash camp or in the ascend-to-the-heaven-group. Possibility of a sideways basing period has to be taken into consideration as well.

I guess we will soon know if the lows of Oct 10 were any good.

We are so close to low levels that I may (just may) try to tap dance around it and see if I can get a trading position established.

In days like this, everyone's out there to get us. Media, Money Managers, Subscription Sellers, etc. They know emotions are tightly wound, and they try to take advantage.

I will try to let the charts lead me, and if they can't, cash is a position, too.