Trading with Jerry Olson

[Jerry Olson]

Morning all

A quick note on what I'm seeing on P&F as of the close of trading yesterday. I wrote about the speed which this correction is moving. Yesterday both the NYSE & OTC Hi Lo indexes fell large percentages as in 8% & 6.5% respectively. Now that is large moves within the confines of these indicators. Everything is crashing quickly and this is a good thing. It's imperative to begin to put together a shopping list of beaten down stocks & etf's so you can enter them as they cascade lower and lower. What will now happen is a short rally up toward the 38.2 Fibonacci retrace or the 50% area off the recent highs to yesterdays lows. Just check all the daily charts. It would not surprise me to make a backside bounce up and into overhead resistance at the falling 20 ema on all the daily charts. But i warn you all the next leg of this correction would start there and then or sooner and we'll get our final washout down toward 12,800 DJIA & maybe 1430 SPX. This is not the time to invest, not yet. Let the cleansing process complete it's final course which is down. Once we bottom and i see the momentum of this downward thrust stops moving lower and begins to edge back up again we can toe dip into big cap techs. Small caps will lag this next big rally up for sure. In fact there is a lot of safely in larges caps vis a vis small caps. For now we trade like we always do, scalp & daytrades only. The changing landscape of these wild and volatile markets, makes it prudent to sit still and wait patiently for the reversals on the charts. No rush we'll be in the game for sure. Stay tuned.
Jerry Olson
The Jog Group LLC
[e-mail]