It was laundry day for Miss Market, and everything got washed out. For the bull in us lets hope that the last excess of optimism has been wrung out of the market laundry and we can call this a bottom some day.
Miss Market did check the pockets of the laundry for gold, silver and oil before she put everything else through the wringer.
If you are a short trader, go for it, otherwise sit back and watch how the market reacts from here. Our momentum indicators will tell you when things are getting better. And actually the indicators didn't get that clobbered and our moderate momentum actually eeked out a gain based on residual momentum from yesterday. So once again the market is grossly oversold, but when that will make a difference we have yet to see.
Now if you look back at yesterday's post, you will see that I noted the curious behavior of the financial stocks yesterday. They started the day real strong and held their own after the Fed announcement and started to rally again. Then they just collapsed like the air going out of a balloon. First thing this morning we found out why when Goldman Sachs released their market notes on financial stocks, Citicorp in particular, which was one of the catalyst for the market wash out today. Now its obvious to me that sometime yesterday afternoon some big money players found out about the Goldman Sachs report and started dumping big time - maybe Goldman themselves. No one ever investigates this stuff, but it so blatant. Its one reason why its so hard to make money as a small investor in the market these days.
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