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Play Editor's Note: While I have consistently been bearish these last few weeks, trying to time an entry point to open new shorts has been challenging. Bets on those financials expected to out perform have failed - at least in a short-term time frame. This is not the time to commit a lot of money toward new shorts. I consistently hear and read how other professional traders are cutting back on position size and trading frequency. We've been saying for weeks that the best bet was to sit out and not trade this mess. The volatility index (VIX) soared to 10-year highs today. Spikes in the VIX of this magnitude are very rare and usually signal a short-term bottom is near. The question is does "near" mean tomorrow or next week? We remain in a bear market and that means bounces are going to be brief but powerful. Could it be a coincidence that the Dow Jones Industrial Average rallied more than 400 points off its lows of the day in the last hour of trading on the same day that the Plunge Protection Team issues this press release?
http://www.treas.gov/press/releases/hp1177.htm
The press release doesn't say anything earth shattering but it lets us know that the PPT is here, they're watching, and we can speculate that they could have been very active in the markets today.


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