I really appreciate the kind words regarding our reversal call yesterday. I enjoyed the reversal as much as many of you did yesterday, but I was mildly disappointed in the final result.
Sure, we erased a 173 point decline to close up 7.92, but I was really hoping to see a dramatic reversal where the Dow would be down sharply, reverse, and close up sharply (+100 points). This did not occur.
Yesterday, even with the reversal, declining issues beat advancers by 9 to 7 on the NYSE, and by 3 to 2 on the NASDAQ. Volume was strong at around 2.56 billion shares.
This action tells me we may not be finished with the final capitulation phase of this correction, and we may see a re-test of yesterday's lows before the next Fed meeting. If yesterday was the final capitulation, it wasn't a great one. The only impressive part of yesterday's reversal was the volume. If I had it to do over again, I would like to have seen a larger recovery.
In any event, if yesterday was the final washout, I'll take it.
Thanks again for all of your kind comments.
Here are some comments from some viewers on our market calls yesterday;
"I am surprised that there are not many comments on this blog. I just want to say, John, you have a great blog. Hopefully you will be right that we will see a summer rally. Keep up the good work!"-
yc32
John,
I gotta give full credit to you for this reversal call today. You have been predicting this turn around for a while and you nailed it to the day - and it came complete with a sharp intraday move down and a V shaped reversal on HEAVY volume! Looking forward to retracing the early market highs on this upturn. At the end of this run, I would love to be net short the market.
Like YC32, I visit your blog daily and love your straight talk.
jragusa
