The situation is getting worse. Value investors will see this as a great buying opportunity, and next week, they might double down as value becomes more of a value.
When I opened the computer this morning (European time), the Dow futures were -80, then they jumped to +300, and then went down to -84. This is noise, just noise!
If I understand correctly, everybody is either short or on the sidelines... and everybody knows that the market is in extreme oversold territory. This means that we could have a tradable bounce today, and if the FED so much as hints at QE3 there could be a furious move back into long trades. Knowing how fast opportunities have lasted these past days, it might be nothing else than a day trade bounce.
However, I should point out that we can see large players buying back AAPL/BIDU/GOOG/ARUN/CTXS/AMZN
This is for the hit-and-run" type of investor. Others should wait this out.
Pascal
