Friday Crash or Recovery?

Question

Without some serious intervention I think the bottom falls out tomorrow. The market sold off hard from an already extreme over-sold condition and fell thru critical supports on both the Dow and S&P and closed at the low of the day. Nikkei down 300 already. Friday's lookin very ugly here. Anybody see a bounce up Friday and WHY. No chicken-little jokes please. Look at the charts.

Answer 1

A lot can happen between now and the opening bell and throughout the day.  But at the moment it looks like its going to be an up day on Friday.

Answer 2

I think tomorrow will be painful. Buy puts on all your big positions. I did that with Apple, down over $9.00 per share today--around 5%. I bought puts last month- paid $1100 dollars each, today they went up to $1875, then back down to around $1800... That helps, but I am really smarting. Looks like oil is on a tear, so is gold, all "flight" to hedging. You can buy GLD etf options, too, and GDX (gold miner's etf). Those did well. I wouldn't be surprised if there is a a lot of buying in the morning, then a big fall again in the afternoon. Lots of Fridays seem to end that way, do they not? . Still, there is more pain to come. Also, consider the short etf's-- like DOG  ( Shorts the Dow). I am in a short etf  against the nasdaq. Tech is taking a beating. Sorry to go on so much. Hope this gives you some ideas for survival techniques. I get up in the middle of the night to see what the foreign markets are doing, and watch bloomberg tv every morning at 5 a.m. Doesn't matter what the charts say now, look at them early in the morning after the Nikkei, Bourse, DAX etc. have all traded, and then you will see what the opening might look like. I also look to see how the grains and precious metals and oil do overnight. I haven't had a decent night's sleep since last October!