Traders Panic and Sell into The Hole during Wild Day

Steve Kanaval |

Markets roar out of the hole with the Dow tumbling to 550 for the day and closing down in an institutionally dominated market today, showing that even professional traders are lured into selling the hole. It was more of a phenomena where those who capitulated were sorry and those who initiated shorts scrambled to get them back (buy) into the closing bell. It was a volatile day, but an important thing to know is it kept perfectly within the trading channel and will likely continue to trek to our lower targets.

Scanning the indexes, I find the Nasdaq had the largest bounce finishing near unchanged while other indexes lost near 1% initiating a major bounce and was clearly driven by short covering. The rally from the bottom started after the oil markets closed today.

The real message here is that volatility is here and this is not a market for the weak of heart or wallet. Participating in markets like these is done mostly by professional traders who are running large books and have deep pockets, but they are in no way exempt from selling shares into the bottom which was clearly the trap for today.

These are some quotes right before the close today:

DJIA 15858.92-157.10-0.98%
NASDAQ 4498.28+21.33+0.48%
S&P 500 1870.80-10.53-0.56%
RUSS2KG 622.34+9.99+1.63%

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:


Emerging Growth

Invictus MD Strategies Corp

Invictus MD Strategies Corp is engaged in the investment, acquisition and development of synergistic businesses in an effort to increase and sustain growth and value.

Private Markets

The Green Organic Dutchman

The Green Organic Dutchman Ltd. ("TGOD") produces farm grown, organic cannabis for medical use. The company grows its high quality organic cannabis in small batches using craft growing, all natural…


Voleo is a free download that allows you to form investment clubs with your friends, family, colleagues, classmates, teammates…basically anyone you know and trust. Invest and manage a stock portfolio…