Big Wednesday Wipeout! Bonzai Pipeline, Oahu

It’s just a big picture but those are big waves! If you rode a wave successfully like that in markets yesterday you were probably pretty pumped-up to try again today. But, wipe-outs happen.

Okay, enough metaphors. This was a pretty ugly day. I day-traded most of the day and was marveling at the low volume and choppiness until the last hour when “BAM!” all hell broke loose.

This is what a bear market can do to you. If you were short yesterday you suffered like our surfer friend with that countertrend rally. But, you had to expect that with markets oversold! Today it’s back to reality, or what passes for it “today”. Tomorrow we go at one more time. Wax your boards!

Volume remains heavy and breadth is as negative today as positive …

This could be the greatest show on earth and you should really give traders a hand. Markets opened strongly on the back of oversold conditions, a stronger dollar, weaker gold, oil and commodities. But later with FNM, FRE crushed and others in the financial sector, stocks fell off a cliff.

It looked mighty grim for awhile this afternoon, but Da Boyz and their allies were there to save, if only temporarily, what was turning out to be horrible day. At the stroke of 3 PM 12K contracts, mostly on the buy side, hit the NASDAQ eMini contract and the short squeeze began. While prices faded into the close the action was spectacular all day.

Volume was again heavy and breadth horrible. Yahoo/Finance has trouble with numbers and maybe that’s a reason they can’t figure out MSFT’s bid….