Day: October 6, 2008

Quick Market Update – Intraday Reversal – Day 1 Rally Attempt

Just a quick post to note today’s big reversal, which formed a hammer candle, which is the most classic reversal candle. Volume appears to be a question mark, but I’ve not had time to do a thorough analysis of that yet and maybe this chart of the NASDAQ 100 Index ETF is an anomaly.

As I noted on Twitter (original tweet here, copied below), I opened a small long position during the day (a little before noon NYC time):

Some panicy tweet crossing the wires… VIX over 50… Etrade fail whale: Was enough for me to take a nibble.

I’m generally more of an end-of-day trader, but was away for the close so did not get a chance to buy more. VIX spiked to 58 intraday, which is extreme panic, then reversed (see chart, below).