90% Down Day

People have been asking me for some time are we there yet?  Has the market bottomed?  We’re getting closer.  Any monkey could tell you that.  Today, the volume on the NYSE is about 90% downside volume and 10% upside volume and it’s been deteriorating all day.  This shows some panic.  But, we need to watch the next few days very carefully.  If we get 3 or 4 of these over a short time period and then we immediately get some 90% up days, that may be the bottom we’ve been waiting for.  We may be under 11000 on the Dow at that point. 

Our job will be to uncover our shorts and buy longs in a short amount of time to take full advantage of the panic.  Also, watch the close.  Let’s see if the volume picks up as we go into the close and let’s see if the market finishes on its lows of the day. 

Getting nasty out there.


3 Responses to “90% Down Day”

  1. 1 stacy June 26, 2008 at 3:57 pm

    You and Dan & all of BizRadio are GREAT!
    Thank you soooo muchhhhh!
    I am reading your blog daily & listening to Dan. Glad all of BizRadio are there for us.
    Thank you Karl; you keep your eyes on those Millions & Trading screens & I’ll keep my eyes on you 🙂

  2. 2 James June 27, 2008 at 11:21 am

    Thanks for the info on the 90% down day! Your recent posts help me to decide to ease off the trigger to cover my shorts! Can you give us a reading on how many NYSE operating company stocks are above 10 DMA? Will you cover only after we get a 90% up day?

  3. 3 keggerss June 30, 2008 at 6:38 am

    James, I will cover when I see the fear peak (capitulation). Because, that will be a rally we can trade even if it isn’t the beginnig of the new bull market.

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