Although the market was only open for 3 days it sure seemed like a very long week. Today was particularly difficult and stressful since the action was even more illogical than usual. Like many others I was surprised by the broadness and intensity of the selling after the indices had made a very strong intraday recovery. I think it is due in large part to a very tired emotional state of quite a few market participants.
This is a difficult market for longs and shorts alike and it takes a toll especially when vacations and summer fun is beckoning. Next week there is very little economic or earnings news on the agenda. Traders will be left to their own devices and, if we are lucky, maybe the FOMC boys will make a few comments to shake things up. The one thing that is quite clear about this market right now is that emotions are becoming more intense. The bears are becoming more secure in thinking this is the beginning of the end and the bulls are getting increasingly nervous. The one great likelihood when feelings are strong is that we will have some interesting trading action.
Rest up and replenish your
batteries this weekend, we have our work cut out for us next week.
Have a good evening.
RevShark