So, today, I am not really sure what to expect. We did not really close strongly under the 9.20 level or so, and although I said 9.50 level, I really feel like the 8.75-9.25 area is the last bit of support before we really test the recent low at 8. If we can get below 8.75, I really think we will do that.
Once again, I still feel that if there is a strong close under 7.50 we will head lower.
As volume decreases, in my opinion, the stock will show its true colors. We had a lot of short covering, my guess, and that is why we had the bounce up (i.e. dead-cat bounce). If volume continues to decrease and we head lower, as stated, my position will remain unchanged.
There is some sort of rumor floating around that there will be a news release today. If that is true, either there will be massive sell the news type action, and price will head lower, or we will see a bounce. It all depends on the news, whether it has any substance.
Lastly, the only other scenario I can consider here is that the rumored news never materializes. My guess is that if this happens, a bunch of people will probably exit, or begin to really consider exiting, as they realize they bought on a rumor (which Livermore strongly opposes and attributes such decisions to less experienced participants).
Good luck today.
