Even though there was no surprise from the Fed on the 1/2 percent rate cut announced today, the market still acted like it didn't know what to make of it. It gyrated between positive and negative territory back and forward until the clock strike 2:30pm, then it started to rally from a loss of over 120 points to a gain of nearly 300 points until with 10 minutes left for trading. Yes, you guessed it, the market sold off the 300 points gain plus more and the Dow ended down 74 points. Don't know how anyone can trade this market with these kind of last minute move. It is just crazy.
If you just look at the closing numbers, you would think nothing have happened in the market today. You would have concluded it was just a ho-hum day that loss a mere 74 points. The advance issues outnumbered the decline issues, and the up/down volume for the NYSE is positive while the down volume edged out the up volume for the NASDAQ. It is these deceiving stats that will trap the uninformed and lure them into believing a bottom has been made. A market that have bottomed would not be trading with a daily range of 500 points or more, and have hundreds of points selloff in less than ten minutes. I don't know about you, this market is too crazy for me. I'm still waiting for the market to signal it has bottom. In the meantime, I just go play with my gold.
