Given It Back.

I wrote yesterday that the market will fade toward the recent low with some backings & fillings. Based on what has happened in the market today, it doesn’t appear there will be much of backings & fillings for it to reach the recent low. Today, the Dow closed down more than 700 points, and the SP500 a bit over 90 points, while the NASDAQ closed down more than 150 points. This is only half the story. With today’s close, the NASDAQ already gave back all of its gains from the Monday October 13, 2008 relief rally plus more. On Friday, October 10, 2008, NASDAQ closed at 1649.51, today it closed at 1628.33, slightly 11 points lower than the October 10 close. The Dow and SP500 are still little bit above the October 10 close, 126.72 points for the Dow and 8.62 points for the SP500. Unless this market reverse itself and starting a new bull market tomorrow, all the indices will give back all the gains made on October 13, 2008 plus more. As a student of the market, one has to respect the market and wait for it to give guidance. Until the market say it has made a bottom, all the intermediate gains it will acquire will be given back. Therefore, I will stay with my thesis as I have stated in my previous post until further notice from the market.