2c
Thursday, March 27, 2008
The bulls caved in......
Yesterday the bulls were fighting tooth and nail to hold 620, and today they gave up. It was a pleasure to short every time it failed the pivot of 623. At the end of the day support s1 619 could not hold any longer. Now it is a short on rallies time until 600ish as indicated in the chart using basic channelling and fib ratios. Counting yesterday as the first day of closing below pivot, it should have one to two more days of selling and that should bring us to April before any meaningful rally. Actually this pull back should be quite obvious for OIH, Nasdaq and 3 horsemen are all topped out. It was kind of mind boggling to see futures way up this morning. You would have thought they know what they are doing. Tomorrow's numbers are 621, 618 and 612. Based on today's closing between s1 and s2, there may be a pop in the morning and you know what is going to happen then, especially on a Friday.
2c
2c
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2 comments:
2c,
I really enjoy your blog. I have an execution question. You say you short every time it fails below 620 midpoint. If I remember correct you are using OEX options. If so, don't you find it hard to get a good fell after the failure? The spreads are really wide.
Thanks
Hi Tradesome1,
Thanks for you kind words. Sometimes I feel I talking to myself all the time. In any case, not every time it fails 620 just this time. Remember, the numbers are constantly changing. I do the home work overnight and I position myself the next day. If I remember correctly, I shorted slightly before 620 in anticipation of 620 failling. Options run ahead. But do not be afraid, look back and you will find even if it fails620 and you enter after, there is still plenty of profits. Remember like I say often,70% is what you aim at, as long as you are in the right direction, you will make money. Do not believe in people playing both sides. It is silly. If on the wrong side close out. If on the right side you will make money in 10 minutes. Now the OEX options spread is normally a dollar and that is exactly the beauty of it. Lots of potential. Say if OEX 620 puts were bidding 14 and asking 15. Put in 14.5 and you will get filled. On average for 1 contract you will make $200 per trade easy. Good luck.
2c
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