Let me be short, and to the point. Last October’s low is the proverbial “line in the sand.” It pleased me a great deal, that from a ‘technical’ perspective, that low held on Monday, when we crashed.
However, that said, it consternates me to NO end that we bounced yesterday, but then, toward the very end of the day, we closed down to a place where we are re-testing last October’s low… the very next day! That strikes me as very much out of the ordinary. And, I’m not comfortable with that one bit.
I fully expected we would get back to this place… but, that it would be a while first… maybe another week or two. I wrote a couple of others privately saying that should this level of support fail, the subsequent fall after that would be a.) a very serious world-wide problem, and b.) possibly setting us up for a ‘once-in-a-lifetime‘ opportunity.
I have some cash left… I’ve fired off another check, which won’t be posted to our account until next week.
It is most comforting to me that the pre-openers, overseas, are trading up nearly 2% at this time (7:50 am EST)
Like I opened with, the level of support from Monday morning, and yesterday’s close, which are both approximately in the area of last October’s low, really needs to hold, or it is not going to be pretty… at all!
Should things hold up, there will typically be a significant relief rally, and a later re-rest of the lows, we want to be there to acquire still more, if we can. I don’t have data readily at hand to see how things went just after the October ’87 crash… that would be helpful, as this present situation could be more normal than I know….
Here’s to your successful investing!
Harold F Crowell