A confirmed buy signal was out midday and had to reverse to longs. See how it bounced off 701 and never looked back. If you had not gone long, wait until it retraces tomorrow and get in. Watch OEX 706 tomrrow, it should close above it and it also should retrace back to the level where it broke out today. Looking back and counting the number of days, this is the fourth day and is one day early than previously forecasted 5 down days till Wednesday. The real aggresive buy signal was actually out when the market could not break through 696 yesterday. You buy when the selling sentiment was the highest. You have to be a contrarian if you trade options. Since it closed way above the 702-706 level today we should forget about the downside 685 target and instead look to OEX 720 as near term target. Such is the beauty of trading the index, you do it both ways. Don't ask me why the market is still going up in face of all these adverse fundamentals. Just follow the trend.
2c
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2 comments:
the trend is down now, and after the big down on Nov. 1, a couple of reactive days are expected. The retracement is at or close to 50% now, and it could go down in a hurry, once it gets to 61.
looking at OI this month, the bull is aiming at 1550, and bear at 1450. I favor bear.
partimer
good to see your blog.
Hi PT,
So glad you found my blog. Agreed, once it get to 61-78, approx 720 will be looking at shorts again. 720 OEX is about 1550 SPX cash. OEX 696 or SPX 1490ish has strong support. The thinking is if it is meant to be broken, it would have done it by now, will see.
2c
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