The market had a little of everything today. Overnight break followed by an overnight to morning rally. Volatile trade trying to make a bottom in order to prevent a raid on the remaining 2007 market gains. Traders love opportunities but even these markets provide no edges just ledges when you participate. There is no question the market is adjusting risk in various sectors and that process takes awhile. Analysis of the sub-prime problem has repeatedly emphized that it is the unknown debt problems that are creating the volatility. Actually, there is little that is not known to the large players but the ones in the right position are in no hurry to make a market for the suffering. Those holding the lousy positions will just have to trade out of them. The volatility is more a liquidity issue. No one will help you with that bad position, until they race you to an unpleasant price.
The market absorbed a bunch of selling today for the first positive technical action in weeks.
Models are rotational.
