Video Stock Market Technical Analysis Review 8/9/07

I have been saying that only the most aggressive traders should be involved in these markets for the last 3 weeks as it is apparent that there is something seriously wrong under the surface. No one can seem to really get a handle on the magnitude of the problems in the credit markets and that will continue to make rallies going forward highly suspicious. The best theme for this market is that THE MARKETS HATE UNCERTAINTY and it is going to take time before we really understand all the implications of the credit problems and it is safe to be an investor in equities again. It is tough to fight a battle when you don’t know who the enemy is or around which corner they may be lurking. Was today’s selloff an overreaction to a foreign event, or was it a selloff which showed how deep the underlying problems are? Meanwhile skilled traders can take advantage of the wild intraday volatility.