Wednesday Outlook: Whiplash

As long as we continue to have 2-4% intraday trading ranges as routine, the environment will only be safe for day-traders. Today featured another whiplash as stocks fell sharply early, camped lower, reversed course and then reversed again. It’s enough to send investors to the chiropractor.

The open lower this morning followed more bad news and sentiment regarding earnings. But volume was relatively light and we remained camped lower. Then with news pending regarding mortgage restructuring from Fannie Mae (FNM), Da Boyz decided to press things early and caused a healthy ramp just before that news. Further there was some floor talk that Blackrock’s holdings of Bear Stearns toxic mortgages wouldn’t be as bad as feared. Want some?

But reality settled in and Da Boyz reversed course just as folks were getting excited and invested no doubt. It’s a market for the hedgies and trading desks to play with.

While volume increased today, most of it came during the whiplash beginning around 1:45 and lasting until the close. Breadth continues to be poor.





And, this data just in, courtesy of blog reader and subscriber David Hurwitz.

Go to page 2-Commodities, Emerging Markets >>

Comments

[bosun.j:]

One must ask how much of the whiplash is caused by the PPT?

2008 Nov 12 02:31 AM

[Pipo:]

Jim Rogers said today in Seoul, "I have started going back into the markets but that does not means it's the bottom''

He is starting to buy.

www.jimrogers-investme...

2008 Nov 12 08:57 AM