We look at the SPY and VIX to determine where the markets are headed next. Today could have been a short term bottom, especially because an inverse head and shoulders on the 60 minute SPY is forming. Nevertheless, a false bottom is what is needed in the market to bring us to new lows. We have underestimated the power of a 3rd wave in the market before, and we won't again. We put in a trade Long XLF and Short QQQQs yesterday, and that provided us with great upside. That being said, we believe that going overall short on the market will yeild nice gains in the longer term (1 week-2 week) time frame, although a potential continuation of a consolidation could be at store for the next 3-4 days.
Wednesday, February 25, 2009
Options and Stock Market Technical Analysis for Feburary 24, 2009 by Idan Koren
(My Original Blog Post: http://www.latesttrendsguide.com/?p=3847)
We look at the SPY and VIX to determine where the markets are headed next. Today could have been a short term bottom, especially because an inverse head and shoulders on the 60 minute SPY is forming. Nevertheless, a false bottom is what is needed in the market to bring us to new lows. We have underestimated the power of a 3rd wave in the market before, and we won't again. We put in a trade Long XLF and Short QQQQs yesterday, and that provided us with great upside. That being said, we believe that going overall short on the market will yeild nice gains in the longer term (1 week-2 week) time frame, although a potential continuation of a consolidation could be at store for the next 3-4 days.
We look at the SPY and VIX to determine where the markets are headed next. Today could have been a short term bottom, especially because an inverse head and shoulders on the 60 minute SPY is forming. Nevertheless, a false bottom is what is needed in the market to bring us to new lows. We have underestimated the power of a 3rd wave in the market before, and we won't again. We put in a trade Long XLF and Short QQQQs yesterday, and that provided us with great upside. That being said, we believe that going overall short on the market will yeild nice gains in the longer term (1 week-2 week) time frame, although a potential continuation of a consolidation could be at store for the next 3-4 days.
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