Thursday, October 02, 2008

Stock Market Continues To Slide

The stock market was down again today as investors unloaded stocks after the government reported a seven year high in jobless claims.

You'll notice in the above chart that the S&P500 is making new lows but on lighter volume than two weeks ago. I find it also interesting that the S&P is at the bottom of a very significant one year channel.

I think if you're short this market, you might want to tighten up your trailing stops to lock in some profits because it wouldn't surprise me to see a sharp bounce in the days to come. For those of you who are thinking of buying the market, I wouldn't do it! There's too much risk and there are a lot better trades out there than picking bottoms in a falling stock market.

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