well Overnight trading really threw a curve ball.Its 30 mins before pre market trading and london has brought the market up to new levels.DJ30 indices is up current high is 11399.50 low is 11324.50.Its heading towards the res level at 11370 for yesterday.There isnt any news coming out today to support the rally and as things stand right now on the charts we are way overbought.On the day chart it seems that a bull flag formed but without any concrete event to rally off it is still 50/50.At closing yesterday i did call for overnight trading to push things higher but this current level comes as a surprise.I still stand by my call that once US market start we should see a pull back but i cant be sure as to how strong that pullback will be it might be another chance for traders to buy on the dip.I have to give Red credit for calling an up day but its still early in and the actual market has not started yet but the way things are shaping up we could have another leg up today but IMHO i see more downside potential.
Many times I thought we would sell off first to the Dow 8300 print, and then go back up to the DIA 118.16 print next year. But, it never happened that way. Instead they decided to go up to the DIA print first and then tank.
This means it’s likely to be worst then expected, and that the 8300 print will only be the first larger wave down. A bounce should follow, but it’s not likely to take out the DIA print, but instead just form a wave 2 retrace, with wave 3 down to follow.
Since I have prints of much lower levels, I’d expect the next move down to take out the 666 spx low from March, 2009. The only wild card here is hyper inflation. If that happens, then the market could ripe to 20-30,000 on the Dow, while gold follows along with it.
I can only go by what the charts and the FP’s tell me right now. And it now says that we are so close to the DIA print that it’s highly likely to be hit before a move down to the 8300 print.
After that, who knows? Again, hyper inflation could produce a huge rally from the 8300 print, but if deflation still lingers then we’ll likely take out the 2009 low after a bounce from 8300.
Red.. I have watched your approach to these disaster warnings for 6 months. I started to believe you, only to move to safe positions and lose upside earnings from August to date… I know you believe them, and hope the ywil happen, but get a better position so that new members dont get caught up in the doomsayer events that you are creating..are you a Bull in the wings?
Anna can help you more on that, as she knows options very well. But, to answer your question… you can sell them anytime between when you buy them, and when they expire.So, once they are profitably, you would sell them… regardless of whether or not it’s close to the expiration date, or still a long way off.
Anna or anyone who can chim in here is the question, I was checking out the VXX jan 12 calls and see the spread is crazy… its like .40 cent spread… anyways… what i wanted to know was if I were to buy the VXX jan 12 calls for 2.10 today… from today til jan 2012.. I can sell my calls for a profit if the vxx moves up correct ? or do I have to wait til jan 2012 ?
Somehow i feel that this isnt the end of it during overnight trading we could see a small rise to carry on a EW5 move but come starting bell the overhead res seems to be holding nicely and if i look at the charts there is more downward potential.The tri factors as i like to call them seem to be totally off right now called my trading firm to talk to them and no one there could make of why currency gold and the market are all on the rise together.These few days are going to be tough but with no news to rally off and promo on hold till nov 10 new released dates there might be not much supporting the market .So at this point a pullback before rallying once again this week seems the most likely case, overall should be slightly down but how far i cant really tell.The only factor which i can think of is the FOMC meeting but thats only due next week.If i missed out on anything please correct me.
well Overnight trading really threw a curve ball.Its 30 mins before pre market trading and london has brought the market up to new levels.DJ30 indices is up current high is 11399.50 low is 11324.50.Its heading towards the res level at 11370 for yesterday.There isnt any news coming out today to support the rally and as things stand right now on the charts we are way overbought.On the day chart it seems that a bull flag formed but without any concrete event to rally off it is still 50/50.At closing yesterday i did call for overnight trading to push things higher but this current level comes as a surprise.I still stand by my call that once US market start we should see a pull back but i cant be sure as to how strong that pullback will be it might be another chance for traders to buy on the dip.I have to give Red credit for calling an up day but its still early in and the actual market has not started yet but the way things are shaping up we could have another leg up today but IMHO i see more downside potential.
S&P 500 Futures before opening bell: CLICK HERE
Many times I thought we would sell off first to the Dow 8300 print, and then go back up to the DIA 118.16 print next year. But, it never happened that way. Instead they decided to go up to the DIA print first and then tank.
This means it’s likely to be worst then expected, and that the 8300 print will only be the first larger wave down. A bounce should follow, but it’s not likely to take out the DIA print, but instead just form a wave 2 retrace, with wave 3 down to follow.
Since I have prints of much lower levels, I’d expect the next move down to take out the 666 spx low from March, 2009. The only wild card here is hyper inflation. If that happens, then the market could ripe to 20-30,000 on the Dow, while gold follows along with it.
I can only go by what the charts and the FP’s tell me right now. And it now says that we are so close to the DIA print that it’s highly likely to be hit before a move down to the 8300 print.
After that, who knows? Again, hyper inflation could produce a huge rally from the 8300 print, but if deflation still lingers then we’ll likely take out the 2009 low after a bounce from 8300.
Disregarding your technical approach I think Tuesday will be a down day.
People are moving in to Gold and Silver for safety.
There seems to be a couple articles that should favor bearish activity.
But you never know in this market. Good luck!
Red.. I have watched your approach to these disaster warnings for 6 months. I started to believe you, only to move to safe positions and lose upside earnings from August to date… I know you believe them, and hope the ywil happen, but get a better position so that new members dont get caught up in the doomsayer events that you are creating..are you a Bull in the wings?
I forgot to mention there was a small change reading on the $nymo Friday.
Anna can help you more on that, as she knows options very well. But, to answer your question… you can sell them anytime between when you buy them, and when they expire.So, once they are profitably, you would sell them… regardless of whether or not it’s close to the expiration date, or still a long way off.
Anna or anyone who can chim in here is the question, I was checking out the VXX jan 12 calls and see the spread is crazy… its like .40 cent spread… anyways… what i wanted to know was if I were to buy the VXX jan 12 calls for 2.10 today… from today til jan 2012.. I can sell my calls for a profit if the vxx moves up correct ? or do I have to wait til jan 2012 ?
short from close @ 1218.50 riding on down yeeeha
Somehow i feel that this isnt the end of it during overnight trading we could see a small rise to carry on a EW5 move but come starting bell the overhead res seems to be holding nicely and if i look at the charts there is more downward potential.The tri factors as i like to call them seem to be totally off right now called my trading firm to talk to them and no one there could make of why currency gold and the market are all on the rise together.These few days are going to be tough but with no news to rally off and promo on hold till nov 10 new released dates there might be not much supporting the market .So at this point a pullback before rallying once again this week seems the most likely case, overall should be slightly down but how far i cant really tell.The only factor which i can think of is the FOMC meeting but thats only due next week.If i missed out on anything please correct me.