Jonathan Burton of MarketWatch fame writes: The New York Stock Exchange was not flooded
during Hurricane Sandy, contrary to rumors. But the storm’s surge may be
nothing compared with the trading wave that could wash over Wall Street on
Wednesday morning, when U.S. markets reopen after being closed for two days.
Technical analyst Ralph Acampora is hoping for the worst.
“Ideally, I’d like to see the market open down big,” he said in a telephone
interview late Tuesday. “A bang, down 4% to 5%,” that rockets the CBOE
Volatility Index VIX -1.71% up to around 25, “would scare the hell out
of everybody.”
A “bang,” with prices tumbling not from disappointing
earnings but due to Sandy’s damage, would spur a new leg up, added Acampora, He isn’t saying this because Wednesday is
Halloween. Acampora — the self-proclaimed “godfather of technical analysis”
whose Wall Street career spans several decades — is looking for the first
session of trading after the two-day closure to end a stretch of market
weakness....
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