I have received a few e-mails asking whether the bounce is over. I honestly don’t know. However, in my mind, it’s not officially over unless we breach 1378 on the S&P chart. There is still a ways to go down before that happens.
I think what we are seeing today is based on: some skittishness about the financials and exits/profit taking at the first sign of strength. Bounces rarely go straight up. As Rob Hanna points out, reversals usually pullback before making there move up.
Trade Update: I went short DSX (another shipper) at $26 and am still holding my few longs until they hit there stops or targets.