Wednesday, October 29, 2008

If market stabilizes for next 1-2 weeks, upwards for the intermediate term

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.

No comments:

Feb 27 - $shak primed for a big move

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