R.C. Market Report 10.24

• Market Trend: Neutral

• After today, I'm feeling a little bullish and a little bearish. Heading into the weekend with monday's open being a big question mark, I'm happy to be neutral and completely in cash. Market crashed in the pre-market futures and they halted trading. But as regular session got underway, market rallied off opening low and stabilized itself. Through rest of the day, market traded in a choppy manner within a range. During the last hour, it was extremely choppy and erratic. Market ended down eventually from day's high but I think people are thinking that it could have been worse.

• While my rational thinking rests on neutral grounds, I do have a theory for next week. I reemphasize the word 'theory' because that's all it is. After initial shakeout on Monday, in which ever direction they decide to push it, I think traders will prepare for the Fed meeting on Wednesday. And in anticipation of Fed's actions - an interest rate cut and/or second stimulus package - that may serve to end the slide and turn the market around, I think the market may rally into the release of Fed minutes. So Monday and Tuesday can be up. But after the Fed's meeting, selloff can begin anew, creating doubts about effectiveness of Fed's actions, and leave traders hopeless. That means, selloff late Wednesday to possibly Friday. And with Friday being the last day of year-end quarter, hedgefund liquidation will likely climax during the week as well. As you can see, I've made numerous assumptions to create this theory so we'll see how it all plays out.

• I read or heard from somewhere yesterday that whoever is left trading now is a real professional because the rest of the crowd has jumped off this runaway train. So if you are still in the game, I commend you on your persistency and vigor.