WOW - Talk about follow through after Key Reversal

UrmaBlume · #1 08-17-2007, 08:46 AM

The market made a key reversal on Thursday. The Fed cut early Friday.

Pre-session at record volume with Dow Futures up 185 an hour before the open.

The chart below reflects the confirmation of the key reversal and foretells a rally.

Of note is that traditional technical analysis tells us that the first rally in a bear market is traditionally very, very robust and yet still fails to make new highs.

I think that this is the case here and that we will not take out the mid July highs on this run.

First rally in Bear market? Resumption of Bull Market?

mrbaseball · #2 08-17-2007, 08:52 AM

The fed lowered the rate at the discount window which means massive short covering

UrmaBlume · #3 08-17-2007, 09:03 AM

Indeed it has to be the start of covering the massive short interest. The NYSE & NASDAQ aren't open yet thus it can't be public or even institutional equity buying.

Fishhead24 · #4 08-17-2007, 09:07 AM

The pressure is on the DOW to perform today...........the last two hours of the trading day are going to be something to behold.

I can't wait to see the action.

spino1i · #5 08-17-2007, 09:20 AM

after getting murdered in the last 3 weeks im a very happy person right now. I think my stocks are going to preform well today (some already are significantly up in before-hours markets)

Fishhead24 · #6 08-17-2007, 09:25 AM

Don't even tune in until the final two hours of the trading session.

Nickoli · #7 08-17-2007, 09:44 AM

I'm a fairly new investor, but why would the last two hours be more important than the first two or any two during the day?

If anything it seems like the hours of market action directly after the rate cut would be most telling.

Fishhead24 · #8 08-17-2007, 09:49 AM

Watch the volume and movement of the market in the final two hours today........it is going to be huge.

spino1i · #9 08-17-2007, 09:51 AM

[ QUOTE ]
I'm a fairly new investor, but why would the last two hours be more important than the first two or any two during the day?

If anything it seems like the hours of market action directly after the rate cut would be most telling.

[/ QUOTE ]

Rolon · #10 08-17-2007, 09:57 AM

So do I buy more at the open or play it safe and wait till Monday?