Whee! The market dropped to 8679 on the theoretical Dow, right near the bottom we think. This is the pre-inauguration sell off. Friday's unemployment numbers will show the massive lay offs, and a bit of truth about what unemployment has been becoming over the past 8 years. Most good employment numbers we've seen have been adjusted, and show the growth in the construction/housing industry, and lack of growth elsewhere. The false facts are coming to surface, in every way.
There is absolutely nothing going right. But wait, the inauguration will be "hope," most think, and a market upturn.
We will play a call on this, but not long term, and NOT yet in anticipation of "the world is saved" by President Obama. There is risk to our current trade, we may be early.
Now it's catching up everywhere. There is a potential of a bit more downside, but we believe the strength of the decline will lessen and we'll begin with February options, although high premium price/ration, today simply because of the risk to the market. Read our Dow Projections carefully.
The January 420 P, bought from 3.70 to 4.99, was profitable to 8.00 in yesterday's trading. There are no open signals.
Floyd, however, thinks it is, and follows the "law of attraction". We will see an upsurge to the market in 2009 to Fib channels. 38% from our lowest lows. I know I'm right.
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