The Dow Friday went below what we saw as a key support line, 11,180. We mentioned this number in the morning alert because our concern was the market closing below 11,180, which would have potentially led to a deeper downslide. This showed a 2.2% pullback, the worst in three months.
Whipsaw and more downturn was amazing Friday watching a Dow theoretical high of 11,504 and a low of 11,104. In a quiet and formidable way the Dow has lost nearly 240 points, enough to point to downturn, only to close back up above a resistance line.
For those that held puts, or had partials after Thursday's profits, we saw highs of 18.80. Our call, no second position taken, hit stop loss. If you took a second buy make your sell 20% above your cost and hold until 11/18 stop loss.
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Three variable control the stock market:
1. Fear
2. Greed
3. Indecision
Fear occurs partly from indecision, and from "loss of gain." Greed occurs from ignoring all and being fearful of "loss of gain" Indecision occurs around both.
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