Don't Be Fooled by the Rebound

Like I said in my "Short Term Market Direction" commentary posted over the weekend, the market might've under-estimated the dire situation in Japan. By now, we all know how that had worked out. And, the last thing we want to do is to continue under-estimating the "sensitive dependence on initial conditions" over there.

Don’t be fooled by the rebound today. My EA continues to stay on "big plunge" alert... Just a heads up.

"I know this may sound too complicated for most traders, but wouldn't it be easier just to follow the trend?" --- Anonymous?

Edited by TechMan, 15 March 2011 - 04:46 PM.

TOTALLY with you here. And sure, I'm following the trend.

TOTALLY with you here.
And sure, I'm following the trend.

You got it, Bud.

With the daily piercing through 2 & 3 STDV of the BB, it's only logical to anticipate at least a very short-term bounce. But, this does not look like our logical and, by all means, "ordinary" correction.

Meanwhile, the Relative VIX had finally shot right through 1.00 convincingly - chart below.

Edited by TechMan, 15 March 2011 - 06:36 PM.