We are less than an hour into the trading session but the Dow Jones Industrial Average (DJIA) has already been down as much as 697 points. Yes, you read that correctly. Even more incredible is the fact that the Dow Jones Industrial Average (DJIA) is now back to flat. A round trip of 700 down and then a 700-point bounce. That's beefy.
In the post below, I noted that I thought there was a shot at a technical bounce. I am not one who usually tries to catch a falling knife but this a market environment like no other. It almost seems like the "best" play may be to go counter the short-term extreme moves. Of course, defining the "extreme moves" is always easiest in hindsight. A big move today can look like nothing the next day. While the Dow Jones Industrial Average (DJIA) has bounced back to flat here, I have a tough time believing that we just rally in a straight line up from here. The action has been too volatile for me to believe it would be that easy. However, even after the bounce we are very oversold so the overall scenario I laid out in the link above is still what I am thinking.
As the market bounces around here, I am going to dig into the the bellwether stocks and former hot money names to see if they are getting some play.
Chart Courtesy of Thomson Financial
Chart Courtesy of Thomson Financial
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