Crammer Panics | stockbee

10/07/2008

Crammer Panics

Market Monitor: Bearish Secondary indicators bullish. Indicating possibility of reflex bounce.
Worden T2108 = 4.06

  • There was real panic yesterday after a long time. Till now most sell-off have been followed by eager dip buyers. Gap downs have been bought, yesterday was one of those days where there was no hint of buyers as market opened weak. Rumors of worldwide coordinated rate cuts had the market recovering in last hour. But overall it was panicky move. James Crammer who has been extolling people to buy was yesterday telling them to panic. Such panicky sell-off are good as they will ultimately lead to capitulation.
  • As there has been lot of selling in last few days, all the secondary indicators on Market Monitor are now in extreme territory. Such extreme readings have high probability of producing a counter trend moves in shorter time frames. Such bounces are for the nimble few. The primary indicator on Market Monitor is not yet in extreme territory but it is getting there.

1 comment:

goodlatin77373 said...

long time, my friend...

I agree with your opinion, market is at extremes. Only 3% of stocks are above 20 moving average, 3.5% above 50 ma and 6% above the 200 ma. VIX at 51, SP500 Bullish % at 7 and NYSE Bullish % at 9...

Historic oversold condition. VIX can not hold this level for long, so a sharp bounce is expected.