Wednesday, October 29, 2008

Going into neutral/ bullish stance...

The market is incredibly whippy right now. And I need a break.

I am pretty neutral now although if we crack the lower level of support in SPY around 84 we will probably crash hard. Conversely if we break above 100-105 we would be in the clear. That's a big range to trade if you are alert. But it will probably be messy.

The 2 reasons are these. One is the heavy volume that is making it hard for shorts or longs to move for more than a couple days. The other is the upcoming election. Seems like the market keeps getting saved right when you think is it going to go under...

If we dont break previous lows, I do think we could form a base here and eventually crawl back up.

But for now I am only going to being playing v short time frames.

No comments:

May 15 - Closed out IWM puts for +120% and picked up DAL and HD Jun calls

I'm going to let the market do its thing this week and probably stay away from new positions until Friday unless something very good pop...