We have had some very
bearish action the last week. And We have seen some extreme volatility!
I don’t expect that to end any time soon, now for us option holders
that is very nice, we can buy low and sell high I.V. This should
continue as the Eurozone, Gulf oil spill (which I think might turn out
to be the worst event) and Thailand and the rest of the world is
imploding! Germany yesterday halted naked short selling which so far
has stabilized the EUR of which I was long overnight and up on that
position.
Now that being said I am neither bull or bear but a chameleon and
will do whatever I believe the market wants to do. So far it appears
that the path is bearish but we are at a critical level as I speak, /ES
1105 and 1095 strong support areas. Gold has retraced but is close to
it’s all time high. I am long call calls and the reason being if things
continue to deteriorate then there is 2 places folks will flock, and
that’s the $ and GOLD.
I do feel that we are close to an interim bottom and we are do for a
bounce soon, most of the lower indicator are oversold are about to be
soon. Will it happen to day I don’t know for sure, but I do know there
is a huge number of open put holders 115 and under that the market
makers will most likely not want to have to fill. Now here is a chart
of the hourly SPY, (btw I do my own charts) the stochs are oversold,
the macd is oversold and the RSI is oversold and pointing up. I think
we either have one more day or could turn today very quickly.
Also here is a video I did from yesterday morning and we had a great
day in chat room…I closed all calls yesterday morning and saw that we
were rolling over.
Trade carefully always be hedged and have a wonderful day, pet a critter!
