Monday, June 7, 2010

More History Made

More history was made with a 300 point plus drop Friday, taking the market below some critical support lines. This will continue, and the whipsaw will also. We may see ups and more downs. We consider 9774 a critical juncture,and if the market closes below it, there is more possibility of extended downside. As the market closed with moves 365 points down, to below 9890, we began to see the test of deterioration.

The market has flirted in the high 9800 range, and continue to try to hover near 10,000. This means, simply, that what is decided already by cycles and supply and demand is being shown to us, and we are truly at a market settling point. There is more bullish news long term for corporations, and the manufacturing sector is growing. Disaster, as does war, will create work while it also destroys work, and our fish and oceans.

Beyond someone paying for this and all our grandiose ideas as we continue to use oil let's at least be smart. Regulate, inspect. Do not trust the corporation. Question all authority.

Use the government to truly enforce, not create bipartisan jabs.

The world order is truly changing, from whatever perspective you wish to see it. Let's use it wisely in trading. We'll repeat dual trades this week. Last week we made money on 3 calls, and Friday some could have profited from the OTM put, but more still hold it. Our call profits were good. It is hard to trade right now. The profits are certainly there, but it takes hairpin trading to hone in on bid/ask.

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