A Key Reversal Day?

If you're wondering whether today was of any importance, I can assure you that it was. But like everything else, most won't see it until further down the road. The buy-the-dip crowd will no doubt try to rescue the market shortly, but I wouldn't join that pack unless you like to lose money. (I'm waiting for the "we caught Osama Bin Laden rumors" to show up shortly once the pain starts to build.)

In retrospect, Monday's major bullish move could mark a medium-term top of this huge multi-month rally. It would make some sense, as no one was looking for the top (and for that matter, still don't). While the Fed's announcement isn't alone enough to cause the market to rollover, the storm clouds are starting to build setting up for a very volatile market ahead.

So be prepared and stay sharp. And by all means, understand that the same methods you've been using in previous weeks probably won't work well in this new trading environment. Many stocks are only just starting their reversal moves and you'll need to adapt quickly in order to keep and make more profits. Sorry to say this, but our job just got harder and the quicker you realize it, the better off we will all be.