I'm Not Fooled.

This market is really testing one's patience. For certain it is testing my patience. Throughout the day, the market is showing signs it will go test the October 10, 2008 intraday low and will soon signal its intended direction for the near future. But shortly after 2:00pm EST, the energy stocks started to turn around, and the Dow rally from down nearly 250 points to ended the trading session with a gain of more than 170 points. The SP500 also rally back from a negative 38 points to end the session with a modest gain of 11 points, while the NASDAQ closed with a loss of nearly 12 points. Although this rebound in the last hour of trading might have some believe the market have bottomed, but I'm not fooled. When the Dow gaining over 170 points with declining issues lead the advancing issues by a ratio of 2 to 1, it is not a sign of a broad base rally or a market ready to turn around. So another day for the market to test our patience and test our ability not to rush to judgment on the direction of the market. The reason for the energy stocks to rally is most likely due to the OPEC meeting tomorrow to establish a cut on oil output. As I have stated in my previous post, I believe no matter what the announced cut will be, it will ended up purely being symbolic and will not prevent crude prices from dropping. There will be cheating from some of the OPEC members to exceed their quota, and that will continue to put pressure on crude prices.