R.C. Market Report 10.28

• Market Trend: Neutral

• We had a powerful rally today. Although overall volume wasn't spectacular, buying volume kept increasing as the day went by. I'd like to see a followthrough in the coming days with solid volume, but a pullback before the next rally maybe the healthier route to take. Tomorrow, we have Fed announcement and I'd be wary of being long or short before the annoucement. Let the news hit the wire and the ensuing volatility to settle down first. Then evaluate the market at that point.

• The day opened unusually strong, signaling that the market has the potential to rally big when the time is right. Then as we gave away all of those gains in about an hour, bears relaxed, assuming that it's just another failed rally attempt. The bears needed to really pound the market at that point to avoid what ended up happening to them. As a bull, you'd be asking for too much if you didn't take profit near the close. Eventhough this could be the start of a much bigger rally, anytime you see the chart go vertically straight up like that, you have got to take profit. There will be another opportunity to get long in the near future.