It could be a good trade but we face real risks of a major crash... I say a 5%-10% chance we'll see the DOW at 5000 by the end of this week... all we need is a final spark to cause a mass exodus... e.g. another terror attack, more profit downgrades, more corporate scandles etc. Also read that the number of short sellers is growing exponentially in the states and people are telling brokers just dump at any price. A few good articles in the weekend AFR that would scare your socks off.
I don't think people are saying is will happen but when your getting comments from the Fed saying stocks are still over valued by 100% why can't we see a major crash?
Good advice from Skippa has been "the lower it falls the less rush there is to get back in". I think this to be good advice, if you want a few trades I'd be buying in the morning say 10:10-10:30, stock like AMP and selling in the hope of a 2-4% bouce later in the day... Holding a stock overnight in these market conditions seems like an eternity.
The key advice in this market: Don't get caught when the music stops!
