Friday

Market Seldom Moves In One Direction

1 Comment January 23, 2009 – 12:53 pm |   | Permalink |  Print This Post |

The Dow is down 1.6% 2.5 hours before it opens - could this be one of those nights where the market moves in one direction? Our observation so far shows that 8/10 times the market will swing from one extreme to the other. It is VERY rare for the market to move in one direction from preopen to close, especially when it already lost 1.6% preopen. The ASX is very close to its previous low. We re open another $5/point for the Dow at 7970, our support level. TheInflationist is confident that the market seldom moves in one direction, except for days where the markets experiences a complete meltdown. Stop loss at 100 points. Our support was broken earlier - so we need to thread carefully. Mark our words - the markets seldom move in one direction from start to finish - therefore there should be abit of a rebound later.