The early stats, projected to closing values, suggest
that today is a bottom. The caution is that projecting data to
the close isn’t necessarily an accurate prediction, especially if panic sets in
and the volumes go higher or if buying sets in and the close is higher than
1859. For me, this means I am inclined
to hold my now losing, long trading-position from Friday.
If the final numbers do indicate a bottom, I will go more
long than the small trading position I am now holding. A cautionary note: if
the data does indicate a bottom today, it is quite possible that it won’t be a
final bottom and may just indicate a lengthy bounce while the market waits for
more data.
Investors may also buy today, pushing the Index above the
prior closing low and extending the bottoming process further.
