Closing Observations

  • What were the people buying the market on the Lehman bankruptcy thinking?
  • I suspect it is that type of thinking that caused the Lehman bankruptcy.
  • Once the market starts going down like this it means we are getting close to a good bottom time wise. However, the end of a decline is usually the most severe price wise.
  • The VIX is over 31. Once the VIX reaches 40 it will be very hard to justify not buying stocks for a trade.
  • Now that we have broken every support level we will be able to shake out the weak hands. That will lead to a better rally.
  • The next time I kick myself for missing a trade because I was too cautious, I hope I remember today.
  • My prayers go out to all the families that are suffering from this mess. Good night.

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