Hi all,

After black Monday where the Dow hit a new low, it seems that the market is searching for direction. It moves up and down between 7150 to 7400 and change direction very quickly.

This is a good market for short trade because no matter which direction you will choose there is a good chance that if it went against you, it will come back very soon (in a matter of hours in fact). You can see it clear on the graph:

it is the same story with the FTSE. The market is on hold and tries to learn what Obama will do next. But it seems that every time that Obama says something the Dow is down. It is not a bad strategy to sell when he speaks you just need to know his agenda.

I think that the Dow will test a new low around 6500 before it will move up to the 7400-7500 region. But times like this it is hard to predict.