8 days a week ! Well, 8 days in a row that the Dow has been down after topping out at 25,400 back on June 11th and having tested 24,400 for an even 1,000-point drop yesterday afternoon. That's right about a 4% correction on the nose and the 5% line is 24,130 so, if we assume that is the full pullback (not yet completed) , then the fall is 1,270 points and we'll call that 1,250 and look for 250-point bounces so a weak bounce would be 24,380, which is the 4% line again and the strong bounce, to the 3% line, would be 24,630 so that's the line we need to see the Dow take and hold today in order to be impressed . The Dow is down 1% for the year so up 1% (250 points to 24,750) is also very important to make. Meanwhile, as you can see from the chart above, the Nasdaq is still up 12% for the year – though we made a lovely $5,305 on yesterday's short position ( see yesterday's Morning Report ) and we HOPE it bounces back towards our shorting line at 7,300 so we can do it again. As I said to our Members in our Live Chat Room yesterday morning : I'm still on the 6,500 bandwagon but I don't know when so better to make $1,000 80 times than spend 3 months waiting for a big drop! Well, now we can cross 5 of those 80 times off the list! Overall, it's just been a small correction but it's more the failure at the top that we're watching, and we'll see if we can retest that next week. As I noted earlier in the week – nothing really matters unless the NYSE can retake 12,800 and I doubt we'll even get to test that today so it's a " watch and wait " day into the weekend. The big news today is, of course, the OPEC Meeting and it appears they have settled on (over Iran's walk-out objection) increasing production by about 600,000 barrels a…
8 days a week!
Well, 8 days in a row that the Dow has been down after topping out at 25,400 back on June 11th and having tested 24,400 for an even 1,000-point drop yesterday afternoon. That's right about a 4% correction on the nose and the 5% line is 24,130 so, if we assume that is the full pullback (not yet completed), then the fall is 1,270 points and we'll call that 1,250 and look for 250-point bounces so a weak bounce would be 24,380, which is the 4% line again and the strong bounce, to the 3% line, would be 24,630 so that's the line we need to see the Dow take and hold today in order to be impressed.
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The Dow is down 1% for the year so up 1% (250 points to 24,750) is also very important to make. Meanwhile, as you can see from the chart above, the Nasdaq is still up 12% for the year – though we made a lovely $5,305 on yesterday's short position (see yesterday's Morning Report) and we HOPE it bounces back towards our shorting line at 7,300 so we can do it again.
As I said to our Members in our Live Chat Room yesterday morning:
I'm still on the 6,500 bandwagon but I don't know when so better to make $1,000 80 times than spend 3 months waiting for a big drop!
Well, now we can cross 5 of those 80 times off the list! Overall, it's just been a small correction but it's more the failure at the top that we're watching, and we'll see if we can retest that next week. As I noted earlier in the week – nothing really matters unless the NYSE can retake 12,800 and I doubt we'll even get to test that today so it's a "watch and wait" day into the weekend.
The big news today is, of course, the OPEC Meeting and it appears they have settled on (over Iran's walk-out objection) increasing production by about 600,000 barrels a…
