How about that! one day is confirmed sell the next is confirmed buy. The worst nightmare came true this morning. Comparing chart pattern, today was like Aug29. It flipped right back. Lucky only 1/3 of puts were reentered last night and was scrambling to get rid of them this morning. As it turned out with doubling on calls, it was a winning day today nevertheless.
Technically, it exploded past 690 and up trend was firmly anchored. Well, the good news today were, higher productivity, non-inflationary unit cost of production, and in addition bigger than expected crude draw down led to the oil rally. The Santa rally is here with FOMC next week and worldwide rate cuts. The only down side may be Friday's job number. The ADP report forecasted a higher than expected increase and basically saying what recession??
In any case, no shorting please if you want to stay alive in the market, and buy on the dip until otherwise. Further, volatility indicator has shown a trend change again today which means up ...Tomorrow's numbers are 697, 690, and 686 and the near term target of course is fib 61% which leads us to 710.
2c
Subscribe to:
Post Comments (Atom)
2 comments:
Do you think 1490 on SPX will fall? Everyone and their grandma is shorting at 1490. Everyone coming on CNBC today said all noise unless closes over 1490.
When it seems so easy and destined to fail, could we really breakout.
Going to be interesting. All hell will break loose if 1490 falls or we close over it.
bigelam
Hi Big,
1490 is just EMA 89 and the bear camp's last defence. The OEX bears' last defence was 690 and today it closed firmly above it. Pull back yes, but up it should go and spx should conservatively reach 1510ish. A lot of talking heads were also saying 1370 before they buy and boy did they miss it big time....The market broke out of the down channel from Oct31 to the up side...
2c
Post a Comment