I’m on 3 hours sleep, working off the effects of too many organic compounds in which a hydroxyl functional group (-OH) is bound to a carbon atom, so please bear with me:
Markets look to be somewhat short term oversold. (I don’t have full access to data, but) given yesterday’s huge 90% down day, I wonder if we might see any sort of attempt to bounce them here.
In these cascades, we often see a move to new lows, followed by a quick reversal attempt. If I was in front of my screen (and if it were less blurry) I would be looking to catch a quick updraft somewhere in the down 1-2% range. (Watch the volume as we approach the lows of the May 6 Flash Crash).
This is mere uninformed speculation on my part — reversal on a Friday before the weekend? — or perhaps its the pink elephants speaking.
Regardless, watch for any attempt to staunch the bloodshed — albeit temporarily — from lower levels.
Be back after coffee . . .
FYI we are putting 20-30% back to work for a bounce/trading opp. (though we remain cautious still) expecting a small mean reverting rally before potentially a lower low …
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