Wednesday, October 29, 2008
Once all the popcorn is popped, I anticipate a very choppy rally.
And filling the gap around 110.
The one thing that makes lean towards we are in a bottoming process is the fact that the bull/ bear battle has not been won by either side. It has only been bloody.
Oct 21 a bullish inverted head and shoulders/ W pattern that failed. Very bearish.
Oct 28 a 2nd retest on lows that failed to break down. V bullish.
Right now, just more choppiness.
The credit situation is easing somewhat so that is definitely a positive factor for the markets. And we know that we are in a recession for sure, it is priced in. Not that I believe recovery is around the corner, there will be forward looking people looking to scoop up from what's left from the carnage.
Still holding $RIG Mar2 and Mar16 calls which are up 100-200%. $shak settling nicely and I have plenty of time with Jun 45 calls
I am liking the set up for XLE a lot now and XBI I am hoping for some settling so I can board the train. Maybe within 1-2 weeks? Missed ...
Didn't make any changes Fri except close the GLD short as the miners + silver started showing strength and an oversold signal on the 2 h...