ChartsEdge BP Chart for Oct28
Posted: October 27th, 2009 | Author: Mike Korell |
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Thanks again Mike and ChartsEdge! Folks - I'm real busy these days with family matters so cannot spend much time commenting. Let's just say that whether and how you play the indicated cycle low today depends on your trading timeframe and style. Like if you're in VIX calls, you already know I suggest TMAR profits, you can always re-enter them at better prices maybe Friday or Monday assuming we get the nice bounce which can be a long equity scalp play for many traders. And, November options will need to be rolled over to December or January anyway (unless you're playing by selling calls and profiting from vanishing premium). I don't have time and this isn't really the blog to focus on detailed options trading tips (try Schaeffer's and/or Phil's Stock World). I just want to point out, rallies do happen in downtrends so think about whether, or how, you want to play. Many swing players using ETFs or plain shorting indices will just leave in their short positions - if you're short from when I pointed out the diagonal ending the probable "B", then you've got profit cushion anyway. Also, taking partial profits to TMAR and lock in some while raising cash for some reloading later on can be a great strategy. These are all questions I can't answer for you. But as a mindful trader, you should be asking yourself.
And remember we haven't even officially confirmed by breaking under the early October lows yet, at least not in most sectors. There are also key levels to watch. There's 1050 which I think will be defended at least temporarily. And the 1037 (maybe 1037/1042) that's the midline target Terry Laundry identified. A bounce from intraday today can postpone reaching those numbers.
I'm thinking the VIX and dollar have been swimming in unison, but will that change short-term? Keep an eye on both. Meantime, careful out there - happy market navigating!
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