After a couple beers the market doesn’t look so bad. Tomorrow morning I’ll show the NDX moved to the 50/50 point of the 2006-2007 range. The Russell re-balancing always causes weird action this time of year. This along with funds closing and a normal down trend is causing much pain. I did buy some fixed risk QQQQ calls today (fixed risk in that all I can lose is what I put in). I think we are ready for a 30-60 day run. But if I am wrong then I lose. Keep in mind that I analyze and report on the market. I cannot control the market… LOL!
For those who follow trading days versus calendar days:
- Monday is 180 TD from the October high on the SPX.
- The March to May move took 45 TD
- Tuesday is 30 TD from the May top
Post Modified: July 2nd, 2008 at 11:50 pm
Tags: Market Outlook · Standard and Poor's 500 (S&P500)5 Comments
5 responses so far ↓
Andy - Anything one buys is fixed risk , Isn’t it ?
By the way , I’ve had a couple as well.
Are you trying to say you bought a call spread ? instead of just calls
No… just calls. But one can risk hundreds and get the same return as tying up many thousands of dollars (that in theory could all go away).
andy, i believe this is just the beginning, we have started an extended b wave or we have started the 3rd wave down of wave 1 of wave C, Dow broke the prv. low, and the rest of the market will begin its fall to follow, if it is the B wave, we will go to around the 1268 for first resistance, but if we break the 1256, my 3rd wave of 1 of C comes into trade. you called it remember?
Libby - I agree on the DOW. But I always watch the strongest market which is the Nasdaq or even the SPX. I’ve noticed at turning points there are is always one or more markets that look terrible. My assumption is that as long as one big market looks reasonably good, the money will just flow from the weak market (DOW) to the strong market. But you could certainly could be right about the overall market too…