Wednesday, October 13, 2010

Before the bell of Opex wednesday

Dear My Readers,

Today will be a day up.
However, according to my experience,  the purpose of this so nice day to dump longs, take profits, and start  to prepare for the upcoming correction.
As I only have 1 unit of SPX and internals are pretty strong volume-wise, I will not sell my 1 unit of SPX till clear volume signal on 1-day MV chart.

Speculative approach:
Normally what smarts do, is a nice day up used to get rid of calls and load some cheap puts preparing for the upcoming correction. Then, next day is the day of price bearish price manifestation. That is a day when market internals break. After that day, usually a last dip buy comes pushing prices up, before trend-change.
I expect 60-80 points of drop in next 4-6 days, then some recovery and bullish continuation.

Gold miners:
As miners usually follow SPX correction and due for a short break, I will sell 1 unit of HUI today. I'll buy back that unit when miner market recovers (in 2-4 working days).

Good Luck!

No comments:

Post a Comment