day traders control these huge fluctuations, they feast on volatility and when volumes wane, its very simple to manipulate a stock, Frost manipulates buying when selling volumes dry up and forces the stock up lending support at various times. Buying back a stock isn't necessarily a healthy thing and some people are mistaken by this especially when a company goes on a buying spree buying back its shares sucking up the liquidity tank of funds rather than dispersing it out via dividends too shareholders. Many insiders get there wealth via stock options and bolster stock price with buy backs is there way of collecting there per diems as a reward at a higher price at exercising.This however usually ends in a futile attempt at helping the stock price, just look at apple at 94 dollars a share, they have executed this strategy and like most companies doing as such, have lost 100's of millions of dollars doing so.
Going back to my original post I said that 1830 on the S&P would be tested again, it did yesterday and bounced off it quickly. My guess is once we cut through that support like a knife we'll fall precipitously and we can go down another 10-15% in quick fashion. That would likely represent an area to get long once again.Oil is absolutely crushing this economy and it take time to filter out and hit the last soldiers standing which I believe is the auto sector.Recession is on our doorstep contrary to what the pundits all are espousing trying to save there jobs by saying" be in it for the long haul"!A caustic remedy to portfolio depletion if you are not in cash.Don't bet the farm on any impending announcement, bear markets have a way of acting corollary to good news , just ask Disney that put out great earnings yesterday, everyone sells the news in bear markets leaving you scratching your head.
