Morning update (2):
This market is bleeding a slow death on the consumer sentiment numbers, the lowest since 1980. We would be going down much faster if it wasn't for option expiration shenanigans. It could be a wicked hang-over next week.
ES needs to hold 1417, support on the 60 mn chart. This, by the way, is right where I bought my SPY July puts on Wednesday. I was never really worried, but I'm glad I used options and not a straight futures trade. It avoided being stopped out in the whipsaws of short covering. As far as day trading, I avoid it during option expiration week.
Below 1417, next momentum support is 1411.75.
Random thought: I had set a mechanical end to this rally between SPX 1420 and 1430 back in early April. Sometimes we lose track of our planning in the heat of the moment, so my attack was probably early, but remember that markets drop two to three times faster than they rise, so it really does not add up to much in the long run. This is where not putting on a full position at the outset enables you to cost average appropriately.
This market is bleeding a slow death on the consumer sentiment numbers, the lowest since 1980. We would be going down much faster if it wasn't for option expiration shenanigans. It could be a wicked hang-over next week.
ES needs to hold 1417, support on the 60 mn chart. This, by the way, is right where I bought my SPY July puts on Wednesday. I was never really worried, but I'm glad I used options and not a straight futures trade. It avoided being stopped out in the whipsaws of short covering. As far as day trading, I avoid it during option expiration week.
Below 1417, next momentum support is 1411.75.
Random thought: I had set a mechanical end to this rally between SPX 1420 and 1430 back in early April. Sometimes we lose track of our planning in the heat of the moment, so my attack was probably early, but remember that markets drop two to three times faster than they rise, so it really does not add up to much in the long run. This is where not putting on a full position at the outset enables you to cost average appropriately.
This entry was posted
on Friday, May 16, 2008 at 5/16/2008 10:56:00 AM.
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