Click on above image to enlarge & see 8/1/10 post for how to interpret
Today we saw a surprise market jamfest that we haven't seen since Oct/Nov 2003. As I mentioned Friday, I saw they were planning a new daily chart 5/10 bounce Tuesday or maybe Wednesday that might let the bulls win the 108 battle. This morning at the open they gapped the Nasdaq 20 pts then ran up another 20 pts doing so about a day and a half ahead of when the chart said it would happen. The bulls & the bears both expected another intraday battle on Tuesday or maybe Wednesday but everybody got blindsided by the bailout team this morning with the big gap up and run before the battle even had a chance to begin. Not only were the shorts caught off guard scrambling to cover but the bulls were also caught by surprise and were also scrambling to get into anything as they realized the market was going up without them. Whenever a market is jammed so hard by surprise, traders call it a jamfest because both sides were caught off guard and were panic buying (the bears were buying to cover their shorts of course). When they did this in Oct/Nov 2003, it worked quite well in stair stepping up the market and the economy out of recession.
By jumping the gun though, the 5 didn't technically touch the 10 for a bounce it was just reversed right above the 10 which is a little cheesy but considering the results I don't think there will be very many complaints.
My limit buy order on HOG executed at 7:03am for 27.52, closed today at 28.21 for 2.5% and is logged in open trades now.
Alan
