02 April 2008
The Market Is Swinging Like Roger Stone
This market is swinging like Roger Stone.
The Dow climbed skyward today, adding 391 points. The chart below shows the sudden shift in market sentiment for the start of the second quarter of 2008.
The above chart also shows how volatile the market's been, bouncing up and down.
The chart below shows the 2-day RSI readings for the Dow and some ETF's for the last three trading days. You should be able to recognize without clicking on the image that the cells have swung from mostly green to overbought red overnight. I'm using overnight in the sense of someone on a three-day bender would think of overnight.
How did I react to this shot to the upside?
After a couple choice swears, I added to my prematurely purchased FXP position...prematurely. I had orders filled at $88.06 and at $84.79, lowering my cost basis to $91.49.
And I temporarily sold off the ALB position at $36.60, as I did not care for the lackluster price action in ALB. I think the market could have been playing a bit of an April Fool's joke on the bulls. Even after today, I think the overall bear trend is ongoing. Hopefully, I can re-establish my position in ALB soon enough, at a better price.
Posted by WershovenistPig at 12:07 AM