DOW finally rebounded from way oversold conditions. Unfortunately, the damage has been done to our PSE. Looks like my previous bearish assumption was that assumed by the market; that we won't be seeing our previous high anytime soon.
All this volatility has resulted in stocks gapping down and gapping up left and right. Given the erratic behaviour of most stocks, I still find it difficult to ascertain patterns in their charts. For the aggressive trader, this erratic market can still be traded albeit just for quick punts. Just look for the gaps to be covered afterwhich, I would immediately get out. For the more conservative ones, you could just wait it out until the volatility subsides.
For those caught with positions from the previous highs and consolidations, you could use this rally as a chance to get out, hopefully with still some profits no matter how small, or to just cut your losses. At this point, its still too early to tell whether the rally we had today is already a reversal or just a dead cat bounce. Capital preservation should ideally be one's priority given the market condition that we currently have.
Good luck as always!
Disclaimer: My above analysis are just that: analysis. I am in not in anyway soliciting for you to buy or sell any security issue. The only person accountable for the trades you make would be yourself and I cannot be held liable in any way for the same
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