We Did it Again

Well, we did it again. Our handy OEX August 500C hit lows of 10.30, and highs of 12.40 by 1.15 p.m. Most traders did buy below prior day close, but following futures knew it unlike there would be huge whipsaw. This is where it is very important to "be on your own" and to "judge the market." I entered, for example, at 10.80 and sold at 11.80 for a quick $1.00 profit, and stopped trading for the day by 1.15 p.m. But for those that stuck it out, saw that we could break barriers, by 3 p.m.the market had hit theoretical tops, and the August 500 Call bought could have been sold for as high as 12.70
We came right to the Dow Projection top with a theoretical Dow at 10,540 in early trading. We believe there may be one more day of upside, perhaps two, and again will play the same issue, noting the higher risk, and that we think we'll soon be oversold and the market ready to correct. It is now a matter of "what trigger," good or bad, and whether FEAR or GREED take control. Wanna bet?
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Valued and esteemed chartists sent this update out over the weekend:

-- DOW AND NASDAQ CROSS BACK OVER 200-DAY LINES
-- THAT INCREASES ODDS FOR SUMMER RALLY
-- EMERGING MARKETS ARE LEADING RALLY
-- % NYSE STOCKS TRADING OVER 200-DAY AVERAGE TURNS UP

We see a necessary downturn taking place, a sell off, before sell offs in portfolios, and sense that the last few days of July will be strongly up. We see within this enough whipsaw to create real sell off, and to move right back up.

Stocks have rallied 3.6% on upbeat earnings. Interest rates are near to zero. As we watch the whipsaw, we almost forget the market gained, or then that it lost. It becomes a gambling pit with electronic pockets. Trading by rules becomes even more important.

If we see it right stocks, within whipsaw, will rally up to perhaps August 2nd, and we'll then see a several week slow down, before more upside. At www.bluechipoptions.com we have strategies on what to do long term. Check out what we do.