Friday, August 17, 2007
An emergency discount rate cut this morning jacked up the markets and provided plenty of parabolic shorting set-ups (like the one below). After the market deflated things were at a stand still, and felt like everyone went home for the weekend. Buyers are just too timid at this point to jump back into the market (especially on a friday) without seeing some upside momentum. All-in-all this week provided some great lessons for how to react to the volatility that was in the market this week. I still have work to do in order to fine tune my tape reading and entry points.