R.C. Market Report 10.23

• Market Trend: Neutral

• Early on, market tried to build on yesterday's late buying effort but failed miserably by midday. At the lowest price level, I started to think that we may be able to mark today as the turnaround day. And that sense of bottom being very near, spurred buyers to jump in and pick up equities in a hurry. It was as if the market took the stairs down but took the elevator on the way up. Overall volume was quite strong and upticks carried more volume than downticks. These are all bullish signs that should not be ignored or discredited. Nonetheless, by anticipating the reversal and putting money in early, these buyers prevented the market from reaching the inevitable bottom price level. Thus, ironically, the bottom pickers prevented the bottom from occurring today. I don't blame their actions, but merely note it as human psychology at work during a market bottom. With a rather strong buying effort today, it wouldn't surprise me to see it try and continue tomorrow. But whether it be tomorrow early on, late, or early next week, I don't think this is the rally that we'll build on. I expect this rally to fail. While the potential is now limited, it may be profitable to short it as this rally weakens for a very quick trade.