I am not that bearish on it. I just saw a bearish flag forming so I played it. I bought the puts when price was at 48 so I am in the profit side right now on them. If you look at the daily chart the bear flag will breakout at 46 and should go to about 44. I will be out with about 200% on that trade when it hits 45.
R1 - 1409 PP - 1402 S1 - 1396 Trend is still up, so the Buyers are still in control of the market. Looking for a buying opportunity at PP (1402 area). Happy Friday. JJ
I know it looks bad ... but after seeing this move for the past threee months we all have a pretty good idea of what is coming. If S1 holds and the intenals firm-up, you know what to do ... see, the thing is, they have to shake out all of the overnight longs first. JJ
Well S1 didn't hold, but it's only 10:30am, I'll run some errands and see what's happening after lunchtime. But in an uptrending market, the only positions I can take are Long or Flat (yes, Flat is a position). Regards, JJ
Hi JJ, I trade the OEX using pivots. This morning the OEX has blown through S1 (647.13) and is heading for S2 (644.61). I bought the Dec655 calls when the OEX index price was S1 +.25 and I stopped it out at S1 -.25 This represented an -8% loss on the Call options from the entry price(1.80) to the Stop price(1.65). I just thought you might find that interesting due to our common interest in pivot point trading. Jeff
Hey Jeff, As you can see, I like to trade the Pivots with directional bias based primarily on the short-term and long-term dominant trends. The trend is still-up, so while I have not initiated a position as yet (I like all the ducks to be pretty much lined up), I certainly hope the market gives me an opportunity to. Things look bad now, but we'll just have to wait and see what the afternoon will hold. As of now (because I have a bullish bias) I think this is just a sell-off which is shaking out the weak Longs. Regards, JJ
Many Shorts were inititiated here (when Support did not hold and the market appeared to be reversing). So, if the market catches Support now, the traders who initiated their Shorts are going to have to cover, this covering will prompt more buying, and the market could reach an all-time high. Sounds far-fetched? I've seen it plenty of times (and the reverse during the Bear market years). JJ
While price action did not break to new highs, it did give two nice Buy trend during the session. So all was not lost today. The dominant trend remains bullish, so I will continue to Buy. Best Regards and have a nice weekend. JJ