So, the DOW hit 8,000 and has bounced up 280 points all the way to being sizably green. That’s a good reversal and I caught it thanks to that ending diagonal pattern. Now the question is how far does this run? I don’t know, but it’s possible that it ends anytime… today, Opex tomorrow, Obama’s inauguration, who knows besides the insiders at GS and JPM? Rumor being floated now is that Citi (C) will be nationalized? Now they’re talking about Bank of America getting TARP money (our money) and .gov guarantees to help BAC purchase portions of C. What a bunch of fools in the government, and I will say the same thing about those buying their stock for any play meant to be longer than just a short pop. The fools rush in.
NOW we’re down from the top, XLF is looking terrible, C is down another 20%.
Below is the current DOW candlestick. Very much a doji that basically just got us back above the lower Bollinger. Reversal would be a lot more convincing with a hammer here instead. I’ll be going out mostly flat to slightly long, just because I don’t want to get caught on the wrong side of whatever they have in store for Opex tomorrow.