The market hit lows of 10,047 by early afternoon, a distinct bottom in our Dow projections. Further downside puts us back to the correction we first dealt with, and confirms those that believe the "crash" would surface again.
Others believe that the volatility is often caused by electronic trading, what may be the end of Wall Street and stock trading as we know it.
At OEX and our sister site www.bluechipoptions.com we remain bullish on this market short term, and believe much of what we are seeing in this correction is based on technical fear, and lack of controls. We're surprised the market hit these lows, and our put recommendation yesterday was HIGHLY profitable to any of our subscribers (and we have many) that "break my rule" of never buying above prior day close. Traders were able to do this all day long, and to play the call, and day trading was astonishing, with some traders moving in and out numerous times.
We hold an OTM call, and will hold it. Those following the rules did not play the put yesterday, and a 300 point move in a day should be concerning not by the amount of decline, but the reason for the decline.
We'll offer a day trade on the put as a new signal, but watch futures carefully before entry. Retracement may well occur from the bottoms.
You will see a new banner on our homepage for Centerpointe Research. This is not a paid advertisement, but my promoting the meditation tapes that help with alpha/beta/theta sound waves that I mention often in the OEX Manual. Take the time to click on Centerpointe and learn their unique method of training the mind to meditate.
No comments:
Post a Comment