Was Friday’s selling an over-reaction?

I don’t have the answer to that question and I ‘m not sure anyone does. The truth of the market is that price leads news…news and surprises follow the trend. I am not sure we have all the relevant informantion regarding the credit issues and their implication on the overall economy, that is a longer term problem. Short term I don’t think we have all the news about large hedge funds which are suffering from forced liquidations. I will continue to approach this market with extreme caution. Last week I kept hearing people tell me how they loaded up for a bounce and then I never heard from them again after Friday. Anyone who talks with authority about what the market WILL DO should be discounted, the fact is that no one knows. For me my approach will always be the same; trade the trend and be ready to bail at the first sign of trouble. I may not make the huge gains, but I will not get smashed in the face either, that is what works for me.