Holiday Markets, from Rocky Humbert
It's definitional that you only know the "low" in hindsight. I can't remember ever seeing a "one day bounce" after a puke of this sort–rather, the first green close produces additional up moves — since there are a ton of people waiting for the first green close to pile on (or cover shorts). All of this is short term stuff–but it will very likely result in a 4 to 8 percent rally off the low. Then you'll hear all of the pundits talking about the "retest". Blah blah blah.
I never own enough when it's going up. And I always own too much when it's going down. But I have my discipline and I stick to it. Kind of like always picking Choice B on a multiple choice exam. Always better to be consistent than to be smart. And it's only lunch time–so today's green could easily still fizzle.