oh voltaire.....here i was about to dismiss my 24/8 high...

oh voltaire.....here i was about to dismiss my 24/8 high scenario, and then you go and post this stuff.

unfortunately, i got caught on the wrong side of the dow on friday night. i have no idea what spurred me to lock in profits on the xjo and spx earlier in the evening but not the dow. such is life.

before closing out in disgust, i at least had the presence of mind to short the xjo - i will/may be proven wrong, but i not believe that a move above 5800 at this stage of the game will be sustained on monday.

cnbc was interesting viewing on friday night. through all the cheering and hoopla on cnbc, here was what i took note of:

- suspicion about insiders knowing ahead of the fed's announcement as financials made solid gains on thursday. could this also explain why financials did well in australia on friday as well as other stocks fell apart.

- despite a massive swing to the upside, volume was light - which suggests panic short covering rather than geniune buying.

- discussion that some hedge funds were at a point of no return and were likely to continue to liquidate assets. as my per previous posts over the last month, this is likely to continue to affect not just stocks but all asset classes - as evidenced last week with an absolute meltdown on prices ranging from base and precious metals, agric, currencies, etc. one of the invited talking heads also talked about industry rumours that the fed was taking action ahead of more bad news (re: hedge funds) likely to hit the press in the next week or two.

- as already mention in another post (i think it may have been farsight), the rallies were capped at fairly obvious levels - even on the xjo - which may suggest that we may range bound for a couple of days and any upside potential beyond this may be limited imo.

my strategy for monday will probably be the same as friday - fade the open and play the bounces on stocks and the indices .....and will continue to be cautious about buying and holding stocks overnight (ie i still think there is more danger being caught out on long side than short for now).