Kaltbaum morning notes!

From last night:
“Need not elongate this nonsense so tonight, a short report!

After 2200 Dow points to the downside in 4 days and 3000 points from the highs, the Dow and the market finally found A low. We do not have to say too much about the outlier open nor the wild intraday swings as we have no clue what happened. But we do know major indices were about as extended to the downside as we have ever seen (except for 1987) and due to bounce from somewhere. Somewhere started today. With the Dow still 1800 points below the declining 50 day moving average, it would be quite normal to get further upside…and in this environment, some vicious upside.

We are hardly paying any attention to opinion or the whys. Price action is good enough for us. Don’t blink!

Mets up by 5 and now hitting the ball well!”

From this morning:

Futures are up humongous…almost the exact opposite of yesterday. China lowers rates again. The U.S. no longer raising rates. Europe says it stands ready. A few more thoughts:

Yesterday’s open was a sham open. As we scanned, we saw bad prints all over the place. Stocks that were down $30 in 30 seconds were back up that same $30 in seconds. We heard of people being stopped out at the lows. There should be an investigation.

The tape is a mess. The charts are a mess. They look like a 3 year old was scribbling with a crayon. 3000 points down and with this open, 1000 points up. Quite unprecedented! Take your time and keep your wits about you. Typically, the volatility will slow a bit here to where we can hopefully get a semblance of order. We wish we had the secret elixir to play the past couple of days…but there isn’t any. We are just happy we were in front of this recent drop and side-stepped it. We simply hope a 16% Dow drop and an 18% Nasdaq drop is it. Need more cards coming out of the deck!