What a great week. We didn't have to wait long to buy the March 500 Call below prior day close, as low as 13.10, rising to highs of 15.00 for a nice same day profit.
We continue to hold our April hedge put, and will soon take our larger second buy, if the market does not turn.
Five years ago I began harping on how the banks were gaining too much power, and our dialogues were about Bubbles Greenspan (I hated him when he was our hero), and about Goldman Sachs.
It continues today: http://www.huffingtonpost.com/2010/02/17/greece-goldman-sachs-fool_n_465942.html
We believe all the indices are moving to divergence. 1100 is strong resistance on the SPX, and 1076 a strong secondary stop.
Chartists that see head and shoulders patterns lead that a downward spiral should soon begin as we hit these market tops. Friday showed strength in the final hour to life the OEX well above 505, and SPX above 1100.
It is of interest that the market is overbought on the daily charts, but still oversold on the weekly charts.
Bulls would hope at market opening for a downside of no lower than 1076 on the SPX, and a rebound to 10,640 area.
Bears believe it is time to short the market
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