NASDAQ to test support for trading range
NASDAQ briefly tested its support at the September peak, but bounced. Today, traders will attempt to test that support more vigorously.
NASDAQ futures are down sharply, indicating a big dip at the open, but whether that dip expands to a deeper selloff or quickly leads to a recovery bounce is not preordained in any way. As always, it all depends on how the hedge funds are shifting their bias, either a more negative "risk off" or a more positive "risk on". Traders can and do express a lot of noisy sentiment, but frequently do not reflect the underlying sentiment shifts among those with deeper pockets.
All of the current market activity or angst and anxiety is mostly exaggeration for the purpose of boosting trading and profiting from short-term market swings. Nothing for any serious long-term investor to worry about, and more of an opportunity to pick up stocks at a cheaper price.
Meanwhile, I'm busy opening new accounts at TradeKing and preparing to move all of my Fidelity business to TradeKing as a result of an unresolved dispute with Fidelity. I've played with a TradeKing account since February. It's not as fancy as Fidelity, but I don't need all of the stuff that Fidelity does anyway (and none of the headaches!) and would prefer cheaper trades and a simpler business model.
-- Jack Krupansky