ChartsEdge map for 2/17 and comments on equities into options expiration this week

Market Map for Feb17

Posted: February 17th, 2009
Author: Mike Korell Filed under: One-Day Market Map »


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Thanks Mike!
Folks - since the futures are already edging below where the ChartsEdge weekly cycle forecast showed for the end of today (look under the ChartsEdge weekly label at right side of the page to locate that post quickly), looks like the day traders will have some fun with the markets intraday today. This daily Market Map forecast shows good potential for that, for those daytraders who are alert!

For most folks though, including swing traders and position investors, remember to always read this in conjunction with the weekly cycle forecast - since rallies in a downtrend always play out differently than the real thing in an uptrend (in case anyone "missed the memo," we look to be in a continuation of the downtrend overall).

Friday is opex and looks like that Goldman Sachs strategy we heard about via naked capitalism and posted here, will be bearing nice fruit to those sophisticated options traders who could play it this week. Not to mention, just using more common shorting positions or ETF's that point short - or those in cash since early January - basically, anyone who didn't let the triangle "head fake" get them long or shaken out of short positions - should be feeling better this week. Meantime we'll continue to chart these waters, so to speak, by charting the markets as we do here.

Which includes other markets like gold and then yen, of course. Gold is seeing a nice bid this morning so it might be in a small third wave within the current wave up that we believe should be pointing to the ~1000 area. We'll also see whether the movement into the yen will be enough to break it out of its triangle to the upside for new highs as we've projected.

We've been identifying several areas and stocks as possibly bullish, such as steel and defense (and even Altria (MO)), but if you're trying to position into those, you'll have to be careful to watch how they act on general markets weakness. That's why I identified the channel trendlines for them, to help identify where they can be more easily confirmed as bullish. In our charting here, we tend to keep a closer eye day by day on the general equities markets, as well as bonds (hmmmm, might expect TLT as well as VIX to firm up if and as equities are weaker), gold and the dollar and yen.

As always - be careful out there, and happy trading!