GE Selloff

4/11/08

As traders finally end their trick to public, they are acting accordingly bad earning news of GE ( down 13%, its biggest one day percentage drop since crash of market year 1987) and consumer sentiment index sliding to its lowest level since 3/1982. Now, I guess why I am very right to remain bearish and my predict the recent market top is correct. I have mentioned the April Fools Rally on 4/1/08 is really an April Fools play to public investors and now is solid proof since all major indexes are closed almost at the same level as the day before 4/1/08. Do I know the GE would post missed earning and trim their guidance ( Remember the CEO has kinda promise stockholders that earning outlook for year 2008 is $2.42 per share back at 12/2007). Now, he changes to $2.20-$2.30 per share for the outlook. Do anyone still believe how American corporate or their CEO doing their job?
I just wanna say that Technical analysis does give you an edge well before that happen. As I ain't a buyer of anything after 4/3/08 as I wrote it probably is market top and so I ain't a loser in this fake rally.
Next week is very tough to predict as many economic news as well as many Big companies post their earning reports ( Of course the outlook if they dare to give ). In addition, next friday is options expiration. Therefore, I try my best to indicate the important level of major indexes support and resistance. I recommend do not hold or trade in next week unless you are daytrading. Good luck to all and have a nice weekend.