R.C. Market Report 10.16

• Market Trend: Downtrend

• My bullish call for the market today has been mostly satisfied after today's trading. We had a nice intraday reversal on a big volume. However, the market easily destroyed monday's gains and my aggressive bullishness along with it. We didn't quite test the lows of friday, failing to drop that far intraday. Today's rally seems likely to spill over into tomorrow morning's action, but I'm starting to have doubts about early next week's action. I think we are either going to break or at least retest the low of last friday. Could today mark the double bottom? It certainly can but it seems way too early to make that call. In either case, we seem to have entered a range bound trading environment where moves of any sizeable magnitude towards either direction should be sold (for profit hopefully). Until things settle down, I think we are in for a little more of the shakedown. I've reduced my equity exposure and hedged myself 50/50 today.