Bait and switch… Yesterday”s market

Bait and switch…
Yesterday”s market drop has extended down further overnight. Greeting Friday”s open in the midst of a sell-off like this often bounces for the morning. That happens because, not yet seeing a bounce and the weekend”s illiquidity about to begin, scared sellers rush to get out of the way of a bigger drop they think is unfolding. What they really do is push price down too far too early and its price suddenly becomes more attractive to buy.

So, you”ve probably been hearing “BTFD” a lot, as in “buy the drop.” Don”t.

That strategy”s track record is perfect, if ignoring how extended a drop can become before finally recovering. Also, like all generalizations, it doesn”t exclude simple pullbacks in an uptrend. This current environment is very different, having spent the couple of months ranging sideways.

Perhaps BTFD will work today. I”ve got my tools to help determine as early as possible, and I”ll cc: you on the memo if any of them trigger. Meanwhile, my bigger concern is that this might be a FD might be Fbig.

So, I won”t put out trading parameters with there being an overwhelming likelihood of speculative premium continuing to be crushed. You already have yesterday”s Open”s Interest blog post, last night”s video review of them, and the notes of that discussion below. Feel free to ask me in this thread for any relevant levels in stocks you”re following.