It is interesting to watch this struggle. The market needed a strong enough consolidation to justify the mystifying and meteoric rise we've seen over the past 6 months. When USA Today, Time, and all the major publications begin telling us "the bull market is roaring," we should all know it's not.
What we've seen this week is a struggle again around support lines, as the market interprets news or events (economic data) around its own psychology.
We have recently read that the Amish community was even taken by our "Hummer greed" and are suffering in our economy.
Biden's comments this weekend were sadly right. There is no way we can truly estimate the rot within the many walls within our economic and environmental blunders, our invasion of China for product, and the demise of our own auto industry.
At OEX we predicted a second and perhaps third stimulus package within 2009 and 2010 last fall, and we believe this is the right thing to do. Begin reviewing our website www.bluechipoptions.com for some other opinions, and trades.
This will cause pain, and the market is our barometer. Our Dow projections for this week are proving very accurate. It takes a watchful eye and tight trading, around re-calculated pivot and support and resistance lines to trade profitably.
Over 70% of our traders may trade for a living full time. Our goal is to attract subscribers who can learn to "read the emotions of the market" and short term trade.
As Floyd has been saying, all is not as it appears, and what is seen is seldom what is being shown.
With futures down most traders didn't take entry to a one day trade to the July call, and all open puts were sold profitably.
-OXBSB OEX.X JUL 2009 410.0000 PUT is a great example of being profitable on 7/5, and hitting highs of 6.20 on 7/6
As open calls had also been sold profitably the day before we're hitting on all cylinders this week. But, traders must have limit orders always in for both buy and sell. For any traders that did take entry to the call yesterday, it was a one day trade, sold by day end.
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